Merchant miners in Odisha keep iron ore fines and lumps offer unchanged over lower production in the month of October 2013. Indian sponge iron prices may find support at these levels over limited supply of iron ore and rising scrap prices in global market.
India’s one of the most prominent merchant iron ore miners, based in the state of Odisha, has kept its iron ore prices unchanged for the month of November. Current prices are pertaining at INR 4,750/MT for CLO 5-18mm of grade 63% and fines are being priced at INR 1,500/MT for Fe 63% (Prices on Ex-mines basis, including royalty).
Sources close to the mines mention that miner has excavated the entire quantity, which had been allotted by ministry of environment and forest (MoEF) on annual basis.
Total production limit of the mines is around 4.5 MnT. However, sources highlight that the miner has got a clearance of another 10 MnT and if everything works fine, they might start mining by December 2013.
Company had held its offers for the month of October as well, despite other big miners like Essel and Rungta, who raised offers by INR 200/MT and NMDC by INR 100/MT.
| Source | CLO (5-18mm), 63% | Fines, 63% |
| NMDC* | Rs 7,450/MT | Rs 4,100/MT |
| Rungta | Rs 8,200/MT | Rs 3,800/MT |
| Serajuddin | Rs 6,800/MT | Rs 3,200/MT |
Net landed prices (including royalty) to a sponge iron unit in Raipur
*Grade 64%
With restricted supply of ore from mid-sized merchant miners based in Odisha seems to be worrying sponge iron units located in central and eastern part of India. Experts feel that sponge iron prices should hold firm looking at limited supply of iron ore in coming weeks.
India’s total iron ore output remained at 145-147 MnT during FY13, out of which around 80-82 MnT was available for merchant sale. India’s iron ore production has consistently fallen in last few years owing to government’s measure to control illegal mining in the country.
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