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/t and fines by INR 500/t, effective from 28 Jan’23.
NMDC fixed prices for lump iron ore (65.5%) at INR 4,800/t, DR CLO (Fe 67%, 10-40mm) at INR 5,820/t and iron fines (64% – 10mm) at INR 3,910/t (FoR prices from Bacheli complex, excluding royalty, DMF and NMET) with effect from today.
Factors behind the price hike-
- Odisha iron ore fines index at an eight-month high: SteelMint’s weekly Odisha iron ore fines (Fe 62%) index has improved by around INR 500/t m-o-m to INR 5,000/tonne (t) ex-mines (including royalty, DMF and NMET). Index has risen to nearly eight month high levels. At state-run Odisha Mining Corporation’s (OMC) iron ore fines auction on 17 Jan’23, 587,000 t, or 90.44% of the total quantity of 649,000 t, has received bids, as per latest updates with SteelMint. Bid prices in auction rose by up to INR 1,300/t compared to last month’s auction.
- Domestic pellet offers rise sharply m-o-m: SteelMint’s bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 10,250/tonne (t) DAP Raipur, moving up by INR 750/t m-o-m.
- Indian steel mills lift offers for January sales: Indian steel majors have announced an interim hike of up to INR 1,250/t ($15) for hot rolled coils (HRC) and cold rolled coils (CRC) in mid-Jan. Improved global market sentiments, absorption of the previous price hikes and raw material prices have played a pivotal role behind the pricing policy of Indian manufacturers. Global hot rolled coil (HRC) export offers have climbed up in January 2023 to touch six-month highs, shows SteelMint’s data.
- Global iron ore prices rise over $10 m-o-m: Benchmark Fe 62% fines prices stood at $127/t (up $11/t m-o-m) CFR. Some market participants anticipate a rebound in both seaborne and portside iron ore demand following the holidays owing to the Chinese government’s stimulative policies.
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