Indian Sponge iron prices declined by INR 200-400/MT W-o-W on hopes that Odisha & Jharkhand government may soon permit to resume operations in Iron ore mines closed under MMDR Act. The recent MMDR Ordinance approved in the parliament has a provision of lease extension till Mar’20 for merchant mines and Mar’30 for captive mines, further which mines will be auctioned.
A Sponge maker based in Odisha urged, “We are optimistic that mines will be allowed to resume operations in April according to the Odisha High Court’s order, that asked the state government to act as per MMDR Bill by 29 Apr’15.”
However, some miners & manufacturers still believe that even if the state government issues the order, resumption of operations will take time.
“Indian government has to sign a new lease deed with miners, who will be allowed to resume operations and then miners have to take statutory clearances at state level. This will take some time, may be a month or two,” said a mining consultant in the state.
Current offers for C-DRI (80 FeM) are INR 17,400/MT in Raipur and INR 18,200/MT (78 FeM) in Durgapur. While, P-DRI (Pellet Sponge) is offered at INR 16,100/MT ex-Raipur and INR 16,800/MT ex-Durgapur.
Sponge Iron (C-DRI) Prices as on 14 Apr’15
| State | City | FeM | Price | W-o-W | M-o-M |
| Odisha | Rourkela | 78 | 16,800 | – 200 | + 50 |
| Chhattisgarh | Raipur | 80 | 17,450 | – 450 | – 450 |
| West Bengal | Durgapur | 78 | 18,200 | – 100 | + 200 |
| Karnataka | Hospet/Bellary | 78 | 16,750 | – 50 | – 750 |
Prices in INR/MT
Source: SteelMint Research
Pellet Sponge (P-DRI) Prices as on 14 Apr’15
| State | City | FeM | Price | W-o-W | M-o-M |
| Odisha | Jharsuguda | 79 | 15,200 | – 300 | – 200 |
| Chhattisgarh | Raipur | 80 | 16,100 | – 400 | – 300 |
| West Bengal | Durgapur | 78 | 16,800 | – 100 | + 500 |
| Karnataka | Hospet/Bellary | 77 | 15,400 | – 200 | – 600 |
Basic prices in INR/MT
All taxes excluded
Source: SteelMint Research
Pellet Prices as on 14 Apr’15
| State | City | Size (mm) | % Fe | Price | W-o-W | M-o-M |
| Odisha | Barbil | 6-20 | 63 | 5,550 | – 100 | – 250 |
| Odisha | Jharsuguda | 6-20 | 63 | 5,800 | 0 | – 400 |
| Chhattisgarh | Raipur | 6-20 | 63 | 6,150 | 0 | – 300 |
| West Bengal | Durgapur | 6-20 | 63 | 5,950 | 0 | – 500 |
| Karnataka | Hospet/Bellary | 6-20 | 62 | 6,450 | – 50 | – 300 |
| Gujarat | Kandla | 6-20 | 62 | 5,300 | – | – |
Prices in INR/MT
Source: SteelMint Research
Iron Ore Prices for Apr’15
| State | Miner | Size | Grade | Price | W-o-W | M-o-M |
| Odisha | Rungta | 5-18 mm | 63% | 5,550 | 0 | 0 |
| Odisha | Rungta | 10-30 mm | 63% | 4,900 | 0 | 0 |
| Odisha | Rungta | Fines | 63% | 2,400 | 0 | 0 |
| Odisha | Serajuddin | 5-18 mm | 63% | 4,850 | 0 | 0 |
| Odisha | Serajuddin | Fines | 63% | 2,250 | 0 | 0 |
| Chhattisgarh | NMDC | 6-40 mm | 65% | 3,250* | 0 | 0 |
| Chhattisgarh | NMDC | Fines | 65% | 2,460* | 0 | 0 |
| Karnataka E-auction | Private Mines | Lump | 61% | 2,640** | 0 | – 170 |
| Karnataka E-auction | Private Mines | Fines | 60% | 1,750** | 0 | – 150 |
*15% royalty extra
**15% royalty + 12% Forest Development Tax (FDT) extra
Source: SteelMint Research
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