India’s largest merchant iron ore mining company, NMDC, has increased list prices of iron ore recently, SteelMint learnt from reliable sources. The company has raised prices of lump ores by up to INR 300-360/t and fines by INR 300/t, with effect from today.
Prior to this, the miner had slashed prices of lump ores by INR 300-360/t and fines by INR 300/t from its Chhattisgarh mines, effective from 17 November.
Factors behind the price hike-
- Export duty revision: The government has rolled back export duties on steel and steelmaking raw materials, effective 19 November. Exports of iron ore lumps and fines with less than 58% Fe content and iron ore pellets will be duty-free, compared to 50% and 45% duties imposed earlier, respectively.
- Hike in Odisha iron ore prices: SteelMint’s weekly Odisha iron ore fines (Fe 62%) index has risen by INR 500/t to INR 3,900/t ex-mines (including royalty, DMF and NMET). The majority of Odisha-based miners have raised their offers post-roll back of export duties.
- Pellets exports resume after duty removal: India’s pellets export trade activities have resumed with a couple of deals reported following the export duty withdrawal by the Indian government recently. SteelMint’s India pellet (Fe 63%, 3% Al) export index, FOB east coast, stood at $101/t on 23 November 2022.
- Domestic pellets offers increase sharply: SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,500/tonne (t) DAP, increasing sharply by INR 900/t compared to INR 7,600/t in the last assessment on 18 November 2022.
- NMDC’s iron ore rake movement rises 20% m-o-m in Oct: NMDC recorded iron ore rake movements from Chhattisgarh at 403 in October 2022, rising by 20% against 336 in September, according to data maintained with SteelMint. The figures include movements within Chhattisgarh and to other state-based units but exclude supplies to AM/NS India through slurry pipeline. Notably, a rake carries 3,850 tonnes (t) of iron ore.
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