Odisha’s major merchant miner – Essel Mining and Industries have announced another price cut in iron ore today. The miner has reduced iron ore prices by INR 350/MT (USD 5) in lump and fines by INR 200-300/MT (USD 3-4). Current price for 5-18mm Fe 65% is around INR 5,475/MT FoR, including Royalty, DMF & NMET.
This is the fourth price cut made by the miner in a month’s time. Prior to this, the miner reduced lump prices by INR 400/MT and fines by INR 300/MT on 17th Dec’18.
Other major miners are also likely to follow the suite and will reduce iron ore prices soon, probably in 1st week of Jan’19.
Essel Mining is one of the major merchant iron ore mines in Odisha. The miner has EC limit of 4 MnT p.a. for its Koira mines while its Jilling mine has EC limit of 6.2 MnT p.a.
Why Odisha iron ore prices decline frequently?
1. Eastern India Pellet offers Fall to seven month low –: Durgapur pellet prices have moved down by INR 200-300/MT this week to INR 6,100/MT against last week’s assessment of INR 6,400/MT. Trade sources reported limited trades at these prices. These price levels have hit seven months low and these levels were last seen in May 2018.
2. Rising production – Odisha based major merchant miners are likely to increase production in the 4th quarter of FY19. This may further put iron ore prices under pressure.
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