NMDC Ltd, India’s biggest iron ore producer, has cut prices of the mineral by up to 11% percent for February, SteelMint learned from market sources.
The public sector miner, which fixes prices at every month, cut prices of lump ore to 2,600 rupees per wet metric tonne (wmt) from 2,900 rupees/wmt, iron ore fines to 2,360 rupees per wet metric tonne from 2,560 rupees/wmt, DR CLO from Rs 3,370 rupees/wmt to 2,990 rupees/wmt, according to sources.
Market participants were expecting a roll over in prices looking at aggressive price hike in global iron ore prices following Vale disruption and a sharp hike in Indian pellet export offers anticipating a global shortage.
Odisha based major merchant miners are still giving discounts on bulk purchase. Key merchant miners in Odisha are looking at scaling up their iron ore production in order to utilize their remaining Environmental Clearance (EC) approved for the financial year 2019 (Apr 2018 – Mar 2019)
As per sources, the current price assessment is around INR 3,800-4,000/MT (ex-mines, including Royalty, DMF & NMET) for 5-18 mm and INR 1,600-1,8000/MT for fines Fe 63%.
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