India’s largest iron ore miner – National Mineral Development Corporation (NMDC) has announced price revision today. NMDC, Chhattisgarh increased prices by INR 100-170/MT. Baila fines prices have moved up by INR 100/MT and prices of Baila lump and ROM by INR 150/MT. DR-CLO prices have increased by INR 170/MT.
Last month, NMDC, Chhattisgarh rolled over prices i.e. in line with Mar’18 prices but later in the month (18th April) decreased its iron ore prices by INR 100-110/MT for rest of the month deliveries.
The miner used to revise iron ore prices at the beginning of the month, has now been seen revising towards the mid of the month since Apr’18.
As per market sources, NMDC iron ore demand has improved this month against last month resulting in hike in prices.
Sponge iron & pellet sponge prices in central India have witnessed increase since last week amid improved inquiries.
Earlier this month, major Indian steel mills announced hike of INR 800-1000/MT for May in flat steel prices and about INR 500/MT in long steel prices. Domestic HRC prices have climbed further owing to limited availability of material in domestic market over less inventories. Meanwhile lesser import bookings and good demand primarily from automobile sector has gave a reason to Indian steel manufacturers to raise the prices in domestic market.
NMDC (C.G.) iron ore prices
| Size | Grade (Fe %) | Prices (INR) | Change (INR/MT) |
| 10-40 mm, DR CLO | 67 | 3,540 | +170 |
| Baila lump , 6-40 mm | 65 | 3,050 | +150 |
| ROM, 10-150 mm | 65 | 2,810 | +150 |
| Blue Dust/Fines | 64 | 2,660 | +100 |
F.O.R prices in INR/MT
Royalty, DMF, NMET and other taxes extra
Source: SteelMint Research
NMDC iron ore production and sales in Apr’18
The iron ore production recorded at 2.41 MnT, down 42% M-o-M against 4.18 MnT in Mar’18. Out of the total iron ore production of 2.41 MnT in Apr’18, 1.57 MnT (65% of total production) was contributed by NMDC Bailadila mines in Chhattisgarh, down 51% M-o-M compared to 3.21 MnT in Mar’18. The remaining 0.84 MnT iron ore was produced from NMDC’s Karnataka mines, down 13% compared to 0.97 MnT in Mar’18.
NMDC witnessed decline in iron ore sales for the month of Apr’18 at 2.22 MnT, down 47% M-o-M as compared to 4.15 MnT in Mar’18. In Apr’18, iron ore sales from Chhattisgarh mines recorded at 1.91 MnT, down 30% M-o-M, as against 2.72 MnT in Mar’18.Sales from Karnataka marked at 0.31 MnT in Apr’18, depicting significant decline of 78% compared to 1.43 MnT in Mar’18.
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