Odisha’s merchant iron ore miner – RP Sao has recently announced a hike in iron ore prices by around INR 300/MT in lumps and fines. RP Sao mines resumed dispatches after the gap of more than two years. The iron ore miner has EC limit of around 5.7 MnT p.a. and is situated in Guali, Joda. The miner was last seeing offering material in the merchant market towards the end of 2015. Earlier, at the beginning of Apr’18, Honorable Supreme Court of India granted ‘consent to operate’ RP Sao Mines after it submitted compensation amount along with interest amount.
Recent increase in prices owes to increase in the royalty of iron ore. According to IBM (Indian Bureau of Mines), the average sale prices of iron ore for Odisha released for the month of April’18 depicted a rise in royalty for iron ore lumps.
Besides increasing Royalty, logistics bottlenecks still persist in eastern India, resulting in reduced rake availability for transportation of iron ore. Amid rake availability issues, domestic pellet prices in eastern India have moved up by INR 400-600/MT in a month’s time. All these factors have collectively resulted in iron ore price hike.
RP Sao Mines Price-:
| Material Type (Size mm) | Grade (Fe %) | Prices in INR/MT |
| Fines | 63% | 2,600 |
| 5-18 mm | 63% | 5,400 |
Ex-mines prices including Royalty, DMF & NMET w.e.f 02 Jul’18; GST extra
Source: SteelMint Research
Leave a Reply