Iron ore prices by private merchant miners in Odisha, India’s largest Iron ore producing state in the country, fails to bring buying interest from Sponge iron units. Private miners like Rungta Mines & Essel Mining have cut Iron ore lump rates by INR 200/MT on 17 Mar, 2014.
Speaking to Sponge iron manufacturers based at Odisha, Chhattisgarh & West Bengal, SteelMint assessed that recent price cut by large miners is not enough to generate buying interest. Most of the Sponge units located in eastern region of India are largely dependent on private miners based in Odisha.
“Price slashed by large miners is not significant. Most of small & medium units prefer Iron ore including other miners like Serajuddin, Indrani Patnaik, KMC & KJS. Also, with ample Pellet quantity available in the market, lump prices are expected to come down further,” said RP Agarwal, a Sponge manufacturer based in eastern belt of India.
On the other hand miners also accept that it is hard to sell lumps as compared to Iron ore fines. Most of them highlight that with Pellet being offered at cheaper price, most of medium sized Sponge units have shifted to Pellets.
Odisha is the largest ore producing state in the country with an annual production of 62 MnT in FY13. Out of which around 26 MnT is captive and rest merchant. Rungta Mines is the largest merchant miner (production wise) followed by Serajuddin & KJS Ahluwalia.
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Prices loaded on to wagons
Iron ore prices including royalty; Taxes extra
Pellet prices are basic; Excise & taxes extra
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