Iron Ore Bookings Increase as Sponge Iron Prices Recover

Will Price Rally in Sponge Iron Lead to Increase in Odisha Iron Ore Prices?

Looking at the consistent improvement in prices of sponge iron (C-DRI) in last few weeks there are speculations arising in the market that whether Odisha based merchant miners will raise lump prices in the coming days.

C-DRI prices in eastern India have moved up by INR 450-600/MT in last one month. On the other hand Odisha lump prices have fallen by INR 150/MT and fines prices remain unchanged against last month. Strengthening prices of sponge iron amid increased bookings from other states may give give a support to the declining lump prices in the domestic market.

SteelMint in talks with some major merchant Odisha miners could figure out that there are chances that merchant miners in Odisha might raise lump prices in the coming days provided the stability in price rally in C-DRI continues.

“Dispatches for fines have reduced considerably this month owing to high conversion cost of pellet makers. Demand for lump is good. Transporters in Koira region being not satisfied with the new freight rates of the Deputy Director of Mines (DDM), Govt. of Odisha had gone on a strike which has hampered the movement of the material of some mines.

Provided the stability in increase of sponge iron continues in the coming days too there are chances that lump prices might go up in Jan’16” shared an official from Odisha based mining company.

Another Odisha based merchant iron ore miner shared that the outlook of the industry looks positive 2-3 months down the line. Bookings from sponge iron makers has increased in last few weeks and looking at this lump prices might also move up probably by end of this month.