It was learnt through sources that Odisha based merchant miners may reduce fines prices by INR 100-300/MT probably by the end of this week. However no confirmation has been received from the company officials.
Amid declining prices of semi finished and finished steel products, iron ore prices in domestic as well as global market have fallen sharply.
On one hand global iron ore prices have hit record lows and have touched USD 42.8/MT, CFR China (for Fe 62% fines) as assessed on 30 Nov’15 over increasing iron ore supplies from world’s major miners namely Vale, Rio Tinto and BHP Billiton.
Weak Chinese steel demand continues to keep iron ore procurement by Chinese steel mills low which has led to accumulation of iron ore stock at Chinese ports. Global iron ore fines prices have fallen by USD 6/MT.
In domestic market, iron ore prices have also fallen significantly. Fines prices in Odisha have declined by INR 150-200/MT M-o-M in contrary to lump prices which have declined by INR 250-450/MT.
SteelMint learnt that steel production from blast furnace has not witnessed any significant change in the past few months. India’s steel production through blast furnace route has remained at 28.74 MnT in H1 FY16 (Apr’15-Sept’15). The figure was 27.88 MnT in H1 FY15 (Apr’14-Sept’14). Thus it seems that major industry players have not made any significant reduction in their steel production in this fiscal.
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