Merchant miners located in the state of Odisha, India's largest iron ore producing state, may consider iron ore price cut for the month of June 2013, according to Industry sources. Major reasons sought are increase in iron ore production in the month of April and falling sponge iron prices across India.
“There is a fair chances that miners may cut iron ore prices on high production and falling sponge iron prices. There has not been much of a change in prices for a long time. There is sufficient availability of high grade Iron Ore and pellet in the market.” said an Industry veteran located in West Bengal.
While many other participants anticipate that there may not be any change as monsoons are approaching and iron ore production will come down. Miners will not mind holding on to the stock.
Current prices for 5-18mm 63% are in the range of Rs 5,800-6,500/t Ex-Mines basis, including royalty. Fines of Fe 63% in the range of Rs 1,700-2,000/t Ex-Mines basis, including royalty.
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