Iron ore prices in Odisha have nudged up this week due to supply tightness. SteelMint’s assessment for Odisha iron ore lump 5-18 mm (Fe 63%) was at INR 4,000/t (ex-mines, including Royalty, DMF & NMET) against last week’s assessment of INR 3,900/t. Some miners were heard quoting fresh offers for 5-18 mm lump at INR 4,200/t.
A trader from Odisha has recently booked 10 rakes of iron ore lump (Fe 63%, 5-18mm) recently at INR 4,000/t from an Odisha miner.
SteelMint’s assessment of Fe 63% grade price assessment has increased to around INR 2,000-2,100/t against last week’s assessment of INR 1,900-2,000/t.
The majority of mining leases that got expired on 31 Mar’20 are yet to resume production which has tightened supplies. Iron ore dispatches from Essel’s Koira mine was hampered from around the last week of Jun’20 till mid-Jul’20 which has also impacted supplies, said trade sources. Monsoon rains have also slowed mining in Odisha.
Domestic pellet prices also increased due to good demand. Durgapur pellet indicative price also increased by INR 300-400/t in the last couple of weeks to INR 5,800-6,000/t.
Some market participants are skeptical about the sustainability of the price gains as sale of the 40mn t stocks with previous leaseholders of Odisha mines have been slow. JSW Steel and AMNS India are all set to start dispatches from its recently acquired mine blocks, which will lower dependence from the merchant market for these major steelmakers, said a market participant.
Leave a Reply