Odisha based merchant iron ore miners, who generally review prices fortnightly, have kept prices unaltered. Overall demand remains weak, owing to consistently falling sponge and steel prices in Indian market.
Despite price cut in early July (lump prices were cut by INR 200-400/MT), miners failed to get overwhelming response. Fines prices had been kept unchanged during first week of July.
Sponge makers prefer pellets over lump due to higher percentage of undersized ore during monsoons. Pellet prices in Barbil (Odisha) are trading at INR 4,100-4,300/MT for Fe 63% for loaded to wagons.
OMC auction fails to get response
Orissa Mining Corporation (OMC), which auctioned 314,000 MT iron ore, was only able to sell 10% of total quantity. If situation persists, OMC may cut base price for next e-auction.
DMF a concern for miners
Odisha government has formulated District Mineral Foundation (DMF), according to which, miners will be required to pay upto 100% of the royalty as a contribution towards DMF. It is not clear whether it will be applicable from the date of amendment of MMDR Act or the date when will be notified. If DMF gets applicable from August, mining cost will increase by at least INR 300-400/MT.
It will be interesting to see how will miners price their ore, when their cost of production is increasing, and on the other hand increasing availability is pulling down prices.
Odisha Iron Ore Prices as on July 15, 2015
|
|
Size | Grade (Fe %) | Prices in INR/MT | M-o-M | |
| Ex-Mines | Loaded into | ||||
|
wagons |
|||||
| Rungta Mines | 5-18 mm | 65 | No Offers | – | |
| 5-18 mm | 63 | – | 4,950 | -200 | |
| 10-30 mm | 65 | – | No Offers | – | |
| 10-30 mm | 63 | – | 4,300 | -200 | |
| Fines | 63 | – | 2,250 | 0 | |
| Fines | 60 | – | 1,800 | 0 | |
| Essel Mining (Koira) | 10-30 mm | 61 | 2,850 | – | -200 |
| 5-18 mm | 62 | 3,850 | – | -200 | |
| 30-80 mm | 61 | 2,500 | – | -200 | |
| Serajuddin Mines | 5-18 mm | 63 | 3,550 | 4,000 | -350 |
| Fines | 63 | 1,500 | 2,050 | 0 | |
| Indrani Patnaik | Fines | 63 | – | 1,850 | 0 |
| KJS Ahluwalia | 5-18 mm | 63 | 3,800 | 4,250 | -200 |
| 10-30 mm | 62 | 3,000 | 3,450 | -100 | |
| Fines | 63 | 1,700 | 2,150 | 0 | |
| Kaypee Enterprises | 5-18 mm | 63 | 3,600 | 3,950 | -200 |
| 10-30 mm | 62 | 3,000 | 3,350 | -200 | |
| Fines | 63 | 1,700 | 2,050 | 0 | |
| K N Ram | 5-18 mm | 63 | 3,800 | 4,150 | 0 |
Prices including Royalty
Source: SteelMint
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