Essel Mining – a major iron ore miner in Odisha has reduced its offers for iron ore lumps by INR 300-400/MT (USD 4-6/MT) and INR 200/MT in fines (USD 3/MT) w.e.f 13 Apr’19.
According to sources, after price correction from Jilling mines, prices of fines (Fe 63% from Jilling mines) is assessed at INR 2,345/MT (ex-mines, including Royalty, DMF & NMET).
This is the 2nd price cut made by miner in a months time. Prior to this, the miner reduced iron ore prices on 22nd Mar’19 by INR 300/MT in lumps and INR 150/MT in fines.
Earlier this week, Odisha’s 2nd largest merchant miner – Serajuddin Mines slashed iron ore offers. Currently the miner is offering 5-18mm lump at INR 3,700/MT and fines at INR 1,900/MT ex-mines, including Royalty, DMF & NMET. The miner is learned to have received decent bookings after reduction in offers.
However offers from other miners in Odisha are hovering around INR 4,100-4,200/MT for 5-18mm lump on ex-mines basis.
During FY’19 (Apr-Feb) Odisha iron ore production has increased by 12% to 98.6 MnT as against 88.05 MnT in the same period last fiscal FY’18.
It is to be noted that demand for low grade iron ore fines has increased considerably from Chinese mills following which Odisha based miners and traders turned active for exports. Also sharp hike in global iron ore prices has kept export sentiments supported. Also in last one week, 4-5 pellet export deals were reported from India.
It would be interesting to see if ongoing export deals will also support domestic market sentiments or increased iron ore output will keep Odisha prices under pressure.
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