India: NMDC’s iron ore rake movements rise by 5% m-o-m in Jan’26
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- Tight lumps supply from other sources leads to strong bookings
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- NMDC’s iron ore production surge by 3% m-o-m in Jan’26
The National Mineral Development Corporation (NMDC), India’s largest iron ore miner, dispatched 647 rakes from its Chhattisgarh mines in January, equivalent to 2.49 million tonnes (mnt) of iron ore.
This marks an uptick of 4.5% compared to 619 rakes (2.38 mnt) in December, as per BigMint data. On a y-o-y basis, dispatches in January rose by 15.7% compared with 519 rakes in January 2025.
NMDC’s rake movements strengthened in January, largely due to strong bookings from RINL and JSP Raigarh and stable dispatches to the NMDC Nagarnar steel plant. Moreover, dispatches to JSW Steel, Dolvi, and Jindal Steel Odisha also increased, resulting in overall healthy dispatches.
The increase was driven by limited material availability, primarily lumps, from other sources and volatility in iron ore spot prices. In recent weeks, many regional plants have started using lumps rather than pellets for steelmaking purposes.
Notably, these volumes are for rake movements within Chhattisgarh and to other state-based units but exclude supply to AM/NS India through the slurry pipeline. Each rake carries around 3,850 t of iron ore.
Meanwhile, NMDC posted its best-ever monthly production at 5.56 mnt in January, marking a 3% rise compared to 5.4 mnt in December.
Sourcing by Chhattisgarh-based units rise 8% m-o-m:
NMDC dispatched 206 (0.79 mnt) iron ore rakes to Chhattisgarh-based units in January, an increase of 4% as against 198 (0.76 mnt) in December. However, supplies to NMDC’s Nagarnar plant fell by 2% to 98 rakes in January against 100 in December. Additionally, NMDC’s rake movements to other steelmakers across the state increased modestly m-o-m.
In Chhattisgarh, several sponge iron units continued to prefer iron ore lumps instead of pellets, further supporting stable rake movement.
Sourcing by units outside Chhattisgarh up 5% m-o-m:
Overall, NMDC’s iron ore movements to plants outside Chhattisgarh rose by 4.75% to 441 rakes in January against 421 in the past month.
Intake by Rashtriya Ispat Nigam Limited (RINL), the leading buyer, increased, with the steelmaker receiving 193 rakes against 177 in the previous month.
Dispatches to KIOCL plunged 51% m-o-m to 33 rakes in January, down from 67 rakes in December, mainly due to a slowdown in the pellet export market, which prompted a more cautious and lower procurement strategy.
Jindal Steel Odisha Limited received 55 rakes in January against 44 rakes in December.
JSW Steel’s Dolvi plant received 95 iron ore rakes in January, with intake remaining steady m-o-m amid firm demand for material from central India.
Outlook:
NMDC’s iron ore rake movements are expected to remain operationally strong in the near term, with dispatches aligned to current production rates and supported by steady lifting from mills. Production should stay well absorbed due to sustained lump consumption, though any upside may be incremental as movements depend on respective plants’ inventory adjustments. Overall, volumes are likely to hold near current levels with limited volatility.
