India’s largest iron ore miner – National Mineral Development Corporation (NMDC) has announced price revision today. The miner has increased Baila fines and lumps prices by INR 150/MT and prices of ROM by INR 140/MT and DR-CLO prices by INR 170/MT as per market sources reported to SteelMint.
Why are domestic iron prices increasing?
1. Sharp hike in domestic pellet offers – Pellet offers in central India have increased by INR 1,100-1,200/MT in a month’s time and have hit 3.5 years high after decent export bookings being made by Raipur based pellet makers. Limited availability in the domestic market has pushed pellet offers and are likely to increase further.
Indian pellet export offers have moved up by USD 25-30/MT M-o-M on strong buying interest from Chinese, South Korean and Japanese mills.
2. Increase in sponge prices – Raipur P-DRI prices have moved up by INR 3000/MT in a month’s time and is currently hovering around INR 22,800-23,000/MT (ex-Raipur) amid a hike in billet offers.
3. Expected hike in Odisha iron ore prices – Trade sources shared that Odisha based merchant miners are likely to increase iron ore prices by around INR 300/MT shortly.
4. Less production amid monsoons – NMDC iron ore production for the month of July’18 was recorded at 1.52 MnT, down 35% M-o-M against 2.34 MnT in June’18. Owing to monsoons production has suffered a setback.
NMDC (C.G.) iron ore prices-:
| Size | Grade (Fe %) | Prices (INR) | Change (INR/MT) |
| 10-40 mm, DR CLO | 67 | 3,890 | +170 |
| Baila lump , 6-40 mm | 65 | 3,350 | +150 |
| ROM, 10-150 mm | 65 | 3,090 | +140 |
| Blue Dust/Fines | 64 | 2,960 | +150 |
F.O.R prices in INR/MT w.e.f today
Royalty, DMF, NMET and other taxes extra
Source: SteelMint Research
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