India’s largest iron ore miner has surprised the market by keeping iron ore prices unchanged for April deliveries from its Chhattisgarh mines. As per sources, stable demand has resulted in keeping prices unchanged for April. Last month the miner had reduced iron ore prices by INR 90-120/MT.
According to railway movement data maintained with SteelMint, NMDC supplied 375 rakes of iron ore from its Chhattisgarh mines in Mar’18, depicting marginal rise as against supply in Feb’18, recorded at 368 rakes. Procurement of NMDC iron ore by Chhattisgarh based units remained almost stable at 41 rakes in Mar’18 as against 40 rakes in Feb’18 by units within the state.
The procurement by units outside C.G., increased by 8% M-o-M to 286 rakes in Mar’18 as against 264 rakes in Feb’18.
Market participants were eyeing for decline in iron ore offers after recent price cut by few Odisha miners over improved supply, fall in domestic pellet offers and decline in global iron ore prices.
NMDC (C.G.) iron ore prices
| Size | Grade (Fe %) | Prices |
| 10-40 mm, DR CLO | 67 | 3,480 |
| Baila lump , 6-40 mm | 65 | 3,000 |
| ROM, 10-150 mm | 65 | 2,760 |
| Blue Dust/Fines | 64 | 2,660 |
F.O.R prices in INR/MT
Royalty, DMF, NMET and other taxes extra
Source: SteelMint Research
In first eleven months of FY’18 (i.e during Apr’17-Feb’18), NMDC’s iron ore production has been recorded at 31.32 MnT, up 3% against 30.33 MnT in the same time frame last fiscal.
The total production from Chhattisgarh mines for FY’18 (Apr’17- Feb’18) recorded at 20.29 MnT, up 5% against 19.41 MnT same period last fiscal. The production from Karnataka mines for first eleven months FY’18 recorded at 11.03 MnT, almost stable against 10.92 MnT same period FY’17.
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