Weekly: Indian iron ore market overview

Domestic iron ore prices continued to rally with NMDC and Odisha based miners increasing iron ore offers. India’s largest iron ore miner – National Mineral Development Corporation (NMDC) has increased prices by 4-5% for Nov’20. Odisha’s Essel Mining has increased iron ore fines price by INR 300/t and lump price by INR 700/t. Bids in recent Karnataka iron ore e-auction increased upto INR 580/t over the set base price.

Chhattisgarh-: India’s state-owned iron ore miner – National Mineral Development Corporation (NMDC) has increased prices by 4-5% for Nov’20, The prices for Baila lump and fines have been increased by INR 150/t and that of DR CLO by INR 170/t. With the recent hike announced, NMDC prices have hit 2-year high levels.

• In a recent auction held on 6th Nov’20, Steel Authority of India Ltd (SAIL) booked 28,000 t iron ore fines (Fe 60.2%) from its Rajhara mines in Chhattisgarh. The bids stood at INR 3,310/t (Loaded into rakes and including royalty).

Odisha-: Aditya Birla Group-owned – Essel Mining has increased iron ore fines price by INR 300/t and lump price by INR 700/t this week

• Odisha’s state-owned miner- Odisha Mining Corporation (OMC) had scheduled an auction for 545,000 t iron ore fines on 03 Nov’20. The auction received an overwhelming response with the entire quantity being booked with a hike in bids up to INR 1,900/t ($26).
• Delhi High Court has extended the hearing date of Sarda Mines and JSPL’s case to Nov-end, SteelMint learned from sources. Dispatches from Sarda Mine’s Thakurani B deposit, including that of ore belonging to Jindal Steel and Power Ltd (JSPL), resumed on Thursday this week.
• Odisha high court deferred the hearing date till 11 Nov’20 on extension sought by old lessees to liquidate inventories.

Karnataka-  NMDC in its recently conducted Karnataka e-auction on 5th Nov fetched higher bids. 207,000t iron ore was booked and JSW Steel remained the largest buyer. The bids fetched in the auction increased up to INR 580/t over the set base price. Hike in bids of lumps was more than in fines lot. Notably, the miner has raised iron ore base price by around INR 150/t for Nov auctions.

Goa- Directorate of Mines & Geology (DMG) of Goa has announced e-auction for 3 mn t iron ore on 10th Nov’20. DMG has notified lots for upcoming e-auctions which would be the 24th auction to be conducted.

India iron ore prices-: