Merchant miners in Odisha have reduced Iron ore prices by INR 200-400/MT because of increased supply and low demand.
Odisha’s largest merchant miner, Rungta Mines having an annual production of 11 MnT, have reduced Iron ore lump prices by INR 400/MT and fines prices by INR 200-300/MT. Essel Mining followed suit by reducing lump prices by INR 400/MT and fines by INR 300/MT.
Current offer for 63% fines is INR 3,600/MT and for 63% lump (5-18 mm) is INR 7,000/MT (as per loaded into wagons; including royalty).
Rungta Mines (Odisha) Iron Ore Prices
| Size (mm) | Grade | Prices | Change |
| 5-18 | 65 | 7,300 | – 400 |
| 5-18 | 63 | 7,000 | – 400 |
| 10-30 | 65 | 6,650 | – 400 |
| 10-30 | 63 | 6,250 | – 400 |
| Blue Dust/Fines | 63 | 3,600 | – 300 |
| Blue Dust/Fines | 60 | 2,800 | – 300 |
| Blue Dust/Fines | 57 | 2,225 | – 200 |
Prices in INR/MT; as per loaded to wagons & including royalty
Source: SteelMint Research
Increase in Production
Iron ore production in Odisha is pacing up after miners like Serajuddin and Rungta have been granted extended mining clearances.
Incremental Capacity in Abeyance by MoEF
| Lessee | Mines | Current EC | Proposed EC | Incremental capacity |
| Rungta | Oraghat |
1.94 |
5 |
3.06 |
| Rungta | Sanindupur |
1.65 |
4.5 |
2.85 |
| Serajuddin | Balda |
4.5 |
15.15 |
10.65 |
| Total Incremental Capacity |
16.56 |
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Quantity in MnT pa
Iron Ore Imports will come Down
Increased production and falling Iron ore/Pellet prices in the domestic market may affect rising Iron ore imports to India. India imported about 9.5 MnT during Apr’14-Dec’14.
Pellet Prices under pressure
Pellet prices will further come under pressure owing to falling lump prices and low demand from Sponge manufacturers. Pellet prices have corrected by around INR 1,000/MT in last 1-month. Current prices are hovering in the range of INR 6,800-7,300/MT ex-works for Fe 63% Pellets.
Odisha 50:50 Rule
Steelmakers in Odisha back-out from the Iron ore allocation made to them by the state government under 50:50 rule. Manufacturers claimed there are lot of flaws in the mechanism of allotment.
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