- Steel mills expect Odisha iron ore miners to cut offers
- NMDC rolls over iron ore prices for May deliveries
SteelMint’s weekly Odisha iron ore fines index (Fe 62%) decreased by around INR 350/t w-o-w to INR 5,700/t ex-mines. Owing to fall in sponge and pellet prices, iron ore prices were down this week.
Rationale:
- T1- No deal has been reported as T1 trade therefore given 0% weightage.
- T2- SteelMint received eight (08) offers and indicative prices under T2 trade deals in this publishing window. Five (05) were taken into consideration and given 100% weightage. To check SteelMint’s iron ore assessment, pricing methodology and specification documents Click here
One of the traders from Raipur concluded around around 2,000 tonnes of 5-18 lumps for Fe 62 grade at around INR 8,000/t (ex-mines, (including royalty, DMF and NMET) this week.
Factors impacting iron ore prices
- Falling pellet prices w-o-w: Pellet prices in Durgapur have decreased, as per SteelMint’s assessment. The current assessment for pellets (Fe 63%) stands at INR 10,300-10,500/t exw Durgapur, down INR 100/t compared with prices seen a week ago. India’s pellet export market continued to remain less active for yet another week. SteelMint’s India pellet (Fe 63%, 3% Al) export index (FOB east coast) decreased by $13/t w-o-w to $145/t on 27 April, 2022 from $158/t on 20 April. The index has fallen to over three-month lows, as per data maintained with SteelMint.
- Sponge prices correct downwards: SteelMint’s daily sponge iron, CDRI, index is assessed at INR 37,300/tonne (t) (- INR 500) exw-Rourkela on 30 April, 2022. On w-o-w basis, the index has fallen by INR 1100/t.
Odisha iron ore prices:
Highlights from other states:
NMDC rolls over iron ore prices for May
India’s largest iron ore miner, NMDC, has kept iron ore prices unchanged for May 2022 deliveries, sources confirmed.
- DR CLO (10-40mm, Fe 67%) – INR 7,320/t
- Baila fines (Fe 64%) – INR 5,160/t
- Prices are on FOR basis, excluding royalty and taxes.
Earlier this week, NMDC had scheduled two iron ore auctions from Chhattisgarh on 28 April, 2022. The entire lot of 16,800 t of DR-CLO (10-40mm, Fe 67%) was booked at INR 7,375/t. along with the two lots of ROM at base price. Rest of the lots from Kirandul and Bacheli remained unsold.
Odisha iron ore prices may correct downwards amidst lower bids and drop in pellet offers. This may lift trade.
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