Iron ore and Pellet offers are on hold following the suspension of Odisha Iron ore mining operations from 26 Iron ore and Manganese ore mines. These mines were running under 2nd deemed renewal, according to Supreme Court’s interim order on 16 May’14.
According to miners, “We are continuously looking for any decision that might come up on sales of present Iron ore stock, from state government”.
Iron ore miners operating in Odisha are waiting for state government’s direction on liquidation of stockpile lying at mines head. However, Pellet producers are holding a wait-and –watch stance on the move miners will take, if current inventory is permitted for sales.
In central India, one of the Pellet makers last sold the material at INR 8,200/MT (ex works Raipur for Fe 63/64) because of shortfall in eastern region; while couple of others, hold their offers. Pellet prices in the southern part are quoted at INR 8,000/MT (ex works Bellary) for Fe 62 and at INR 8,050/MT for Fe 62.
Iron ore prices will soar if government allows miners to get rid of their inventory accumulated at mines head. Consequently, Pellet makers will follow the trend. Odisha Pellet industry will be at an added advantage provided the movement of material is not permitted.
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