Government-owned NMDC recorded iron ore rake movements from Chhattisgarh at 170 in July 2022, lower by 19% against 209 in June, according to data maintained with SteelMint. The figure includes movements within Chhattisgarh and to other state-based units but exclude supply to AM/NS India through slurry pipeline. Notably, a rake carries 3,850 tonnes (t) of iron ore.
RINL largest buyer: Rashtriya Ispat Nigam Limited (RINL) remained the largest buyer of NMDC’s iron ore from Chhattisgarh in July. RINL’s iron ore sourcing was down sharply by 39% to 66 rakes in July as against 108 in June. RINL’s production is dropping as one of its three blast furnaces is out of operation. The blast furnace has been idle since January due to high coking coal prices and sluggish demand impacting business plans.
JSW Steel recorded a 24% decrease in receipt of iron ore rakes from NMDC Chhattisgarh at 44 in July as against 58 in June. Indian mills seem to have lowered steel capacity utilisation to offset the impact of lower exports post-duty imposition.
Southern India-based pellet-maker KIOCL recorded iron ore sourcing at 6 rakes in July, compared with 4 in June. KIOCL has undertaken temporary shutdown of its pellet plant at Mangalore due to the imposition of a 45% duty on pellet exports by the Government of India vide its notification dated 21 May 2022.
NMDC’s total iron ore rake movements to plants-based outside Chhattisgarh were recorded at 136 last month compared to 189 in June.
Chhattisgarh-based units’ sourcing from NMDC up: NMDC’s iron ore rake movements to Chhattisgarh-based units were recorded at 34 in July compared to 20 in the previous month, as per data maintained with SteelMint. However, the figures are still sharply lower compared to the monthly average of 75-80 rakes.
Notably, NMDC had reduced lump ore prices by up to INR 600/t and fines by INR 500/t on 12 July 2022.
Exports nil: NMDC’s long-term iron ore export contracts with Japanese steel mills (JSMs) and South Korea’s POSCO were scrapped as the key sop of a reduced 10% export duty was removed.
NMDC’s (Chhattisgarh) iron ore rake movement: Jun’22 vs Jul’22
Figs. exclude ArcelorMittal Nippon Steel India Limited’s movement through slurry pipeline.
Each rake carries approximately 3,850 t of iron ore
Source: SteelMint Research, Railways
To know more about, Indian iron ore market outlook
Iron ore and pellets conference: SteelMint Events will be hosting the 5th Indian Iron Ore & Pellet Summit on 3-4 August, 2022 at The Lalit, New Delhi. The conference will discuss key issues being faced by the iron ore and pellets industry in India. The focus will be on market dynamics, policy-related changes, growth challenges and enablers, sustainability and decarbonisation goals, the way forward and many more talk points.
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