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 500-600/t and fines by INR 500/t, effective from 01 Jan’23.
NMDC fixed prices for lump iron ore (65.5%, 6-40mm) at INR 4,600/t, DR CLO (Fe 67%, 10-40mm) at INR 5,520/t and iron fines (64% – 10mm) at INR 3,410/t (FoR prices from Bacheli complex, excluding royalty, DMF and NMET) with effect from today.
Factors behind the price hike-
- Odisha iron ore prices up m-o-m: SteelMint’s weekly Odisha iron ore fines (Fe 62%) index has improved by around INR 1,000/t m-o-m to INR 4,500/tonne (t) ex-mines (including royalty, DMF and NMET). The majority of Odisha-based merchant miners’ iron ore offers increased and they may announce new hike in offers in the first week of January 2023.
- Pellet exports improve after duty removal: India’s pellet export trade improved last week. SteelMint’s India pellets (Fe 63%, 3% Al) export index, FOB east coast, was recorded at $109/t, up by $1/t w-o-w. The index seems to be improving, with a couple of deals reported following the removal of export duties, but buying interest has recently narrowed on account of rising Covid cases in China. An Odisha-based pellets producer has concluded an export deal for 55,000 t of pellets (Fe 63%, 3% Al), which was heard concluded at $122-123/t CFR China for January 2023 shipment, sources confirmed.
- Domestic pellet offers rise sharply m-o-m: SteelMint’s bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 9,650/tonne (t) DAP Raipur, moving up by INR 1,200/t m-o-m. Buyers have now started showing interest in pellets buying.
- Indian steel mills to lift offers for January sales: Trade prices of hot-rolled coils (HRCs) have been on a rise for the second consecutive week. The current week’s price assessment shows an increase of INR 800/t ($10) in the Mumbai market. Mills are eyeing a hike in prices for January 2023 sales, which has kept trade segment prices buoyant. Furthermore, Jindal Steel & Power Ltd (JSPL) has announced an increase of INR 1,000/t in list prices of rebar recently for January 2023 sales.
- Global iron ore prices firm up: Benchmark Fe 62% fines prices moved up by $14/t m-o-m to $117.35/t CFR China on 30 December. Iron ore prices were likely to rise in the short-term as construction demand in China may increase around March 2023, promoting the usage of greater Fe content medium-grade fines.
Karnataka roadshow
How is Karnataka’s iron ore and pellet industry shaping up post SC verdict? What is the potential in terms of production, demand, exports, and sales? Are you an industry stakeholder keen to find answers to these and several other queries? Book your seat at SteelMint’s Road Show-cum-Conference on Karnataka’s Mining Sector to be held from 19-21 January, 2023.
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