The Supreme Court’s stay order on mining operations of 26 mines working under deemed renewal in Odisha has gradually started impacting Sponge & Steel manufacturers in eastern region of India. Trade sources believe that situation will become more critical in coming days.
“Most of us had stock of Iron ore for 20-25 days, which will get over soon. Supply from Odisha will get tough as mines which are operational are already over booked. We see NMDC as our preferred source of Iron ore,” said a Sponge iron manufacturer based in Raipur, Chhattisgarh.
Chhattisgarh produces around 20 MnT of Iron ore, out of which some quantity is reserved for the state based Sponge iron units.
Pellet Prices crawling an all Time High
Restricted supply and rising Iron ore prices have made Pellet manufacturers to raise their offers by INR 3,000/MT (USD 50/MT) in last one month. Current prices for Fe 63% Pellet are at INR 9,000/MT (loaded to Wagons, Odisha) against an all time high of INR 9,700/MT in May, 2012.
NMDC likely to raise Iron Ore Prices for June
NMDC, India’s largest miner having a production of over 30 MnT, is likely to raise offers in the month of June looking at restricted supply of Iron ore from Odisha. Current cost of 63% Fe Iron ore lumps (5-18 mm) from Odisha is at around INR 7,800- 8,000/MT, delivered Raipur.
“We have received a lot of booking in last few days as steel mills have an apprehension of price hike,” said an official at NMDC.
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