Wednesday, December 1,
SteelMint Exclusive
Iron ore mines in Orissa have slashed their prices for lumps and size ore up to Rs 500/MT, whereas iron ore fines prices remain unchanged.
The much awaited price cut happened last night. Mines such as Serajuddin, KN Ram, MG Mohanty and some other miners have reduced their prices by Rs 500/MT, where as mines like Essel and Rungta have slashed their prices by Rs 250/MT.
Whereas iron ore fines prices remain unchanged over high export prices and good demand from the exporters. Iron ore fines Fe 63% prices are hovering around Rs 2150-2300/MT
Current prices of iron ore size ore (5-18) is around Rs 5300-5600 on ex mines basis, where as bookings of 10-30 and 10-80 mm sized iron ore remains closed.
Steel market has been going through a sluggish period with demand for finish goods being low. Poor demand for finish good and higher raw material prices had lead to reduction in production capacities. As a result the procurement of iron ore and coal had reduced. Moreover, mines in Orissa which were closed on violating forest laws have gradually started their operations, which have increased the supply of iron ore in the market.
With reduced procurement and increased supply, price cut for iron ore was already expected. So, a reduction in prices was not a big surprise but it could be a respite for steel manufacturers and might help them in attaining better conversions/margins.
Reported by Monica Patnaik
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