NMDC Iron ore prices for June 2015 remain unchanged at levels similar to May.
NMDC today decided to roll over the prices for the current month looking at low demand from end user/steelmakers such as RINL and Essar Steel.
NMDC Iron Ore Prices from Jan’15-Jun’15
|
|
10-150 mm (Fe 65%) |
10-40 mm, DR CLO (Fe 67%) |
6-40 mm (Fe 65%) |
|
| Jun’15 | 2,660 | 3,840 | 3,050 | 1,960 |
| May’15 | 2,660 | 3,840 | 3,050 | 1,960 |
| Apr’15* | 2,660 | 3,840 | 3,050 | 1,960 |
| Apr’15 | 2,860 | 4,040 | 3,250 | 2,460 |
| Mar’15 | 2,860 | 4,040 | 3,250 | 2,460 |
| Feb’15 | 3,300 | 4,540 | 3,750 | 2,760 |
| Jan’15 | 3,690 | 4,990 | 4,200 | 3,060 |
Prices in INR/MT
*Prices effective from 18-30 Apr’15
Royalty@15% and other taxes extra
Source: SteelMint
Let’s take the company had cut prices for June 2015, even then, sales may not have gone up drastically. The production and sales figure was nearly 2.3 MnT last month because of stock pile at the miner’s end. In contrast to April 2015, there is no improvement in either production or sales.
Vizag based RINL is already holding enough of Iron ore at its plant along with finished steel output, which prevents the steelmaker from procurement in large quantities as of now. While, Essar Steel isn’t utilizing Hazira based steel plant at rated capacity; the limited production restricts bulk Iron ore purchases in the near term.
As market participants expect Odisha based Iron ore miners to cut prices in the following week, they also hold a wait-and-see attitude regarding second price revision by NMDC in June 2015.
Though Essar Steel and RINL are the major customers and second price revision (reduction) may not help at large, we have to wait and watch if the company decides to cut prices, following Odisha market.
According to us, JSW Steel isn’t buying more than a single Iron ore rake (3,850 MT) per day from NMDC and is resorting to imports with about 0.6 MnT Iron ore vessel booked for July delivery. The Brazilian Ore is to be utilized at its Dolvi (Maharashtra) steel plant.
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