Odisha: Merchant miners in Odisha kept offers unchanged in 1st half of May’16. However in 2nd half, KJS Ahluwalia and Kaypee Enterprises reduced lump prices by INR 50-150/MT and fines prices by upto INR 50/MT. Other major merchant miners have not yet revised prices for 2nd half and continue to hold same offers as of now.
Sharp decline in sponge iron prices resulted over high cost of raw materials and dull demand may compel sponge manufacturers to cut production. This may in-turn put iron ore prices under pressure.
Odisha iron ore prices as on 18 May’16
|
Miner |
Size (mm) | Grade (Fe %) | Prices in INR/MT |
Change |
| Rungta Mines (Joda)* | 5-18 | 62 | 2,750 | 0 |
| 10-30 | 62 | 2,650 | 0 | |
| Fines | 62 | 1,550 | 0 | |
| Serajuddin Mines | 5-18 | 63 | 2,150 | 0 |
| Fines | 63 | 1,300 | 0 | |
| Essel Mining (Koira) | 5-18 | 62 | 2,250 | 0 |
| 10-30 (Sc) | 61 | 1,600 | 0 | |
| Fines | 63 | 1,275 | 0 | |
| KJS Ahluwalia | 5-18 | 63 | 2,225 | -50 |
| 10-30 | 61 | 2,000 | -150 | |
| Fines | 63 | 1,100 | -50 | |
| Kaypee Enterprises | 5-18 | 63 | 2,150 | -50 |
| 10-30 | 62 | 2,000 | -100 | |
| Fines | 63 | 1,150 | -25 | |
| Indrani Patnaik | 5-18 (Cr) | 63 | 2,150 | 0 |
| 10-30 | 62 | 2,050 | 0 | |
| Fines | 62 | 1,250 | 0 |
*prices as per loaded to wagons & inclusive of Royalty, DMF & NMET
ex-mines prices & inclusive of Royalty, DMF & NMET
Source: SteelMint Research
Trade-wise:
- KN Ram iron ore prices are as follows: 5-18 mm (Fe 63%)-INR 2,500/MT and fines (Fe 63%) – INR 1,400/MT (Prices in INR/MT are loaded to wagons & including Royalty and DMF)
- KMC iron ore prices are as follows: 5-18 mm (Fe 62%)-INR 1,900/MT, 10-30 mm (Fe 62%)-INR 1,750/MT, fines (Fe 62%)-INR 1,100/MT and fines (Fe 57%)- INR 750/MT (ex-mines prices & inclusive of Royalty & DMF)
- As per trade sources, few Odisha miners are heard giving INR 100-200/MT discount on bulk quantity purchases
Royalty remains unchanged in latest IBM price circular: In the recently published average sale price of Indian Bureau of Mines (IBM) iron ore royalty for Odisha lump (Fe 62% to below 65%) was at INR 286.5/MT which is now observed at INR 285/MT. For Odisha fines (Fe 62% to below Fe 65%) iron ore royalty was at INR 209.9/MT which is now seen at INR 192.5/MT.
Chhattisgarh: NMDC reduced iron ore prices by upto 11% for May’16. In Apr’16, NMDC had raised prices following which iron ore sales fell, this might have forced NMDC to go for a price cut in May’16.
NMDC Iron Ore Prices for May’16
|
Size |
Grade (Fe %) | Prices |
M-o-M in INR/MT |
| 10-40 mm, DR CLO | 67 | 2,300 | -220 |
| Baila lump , 6-40 mm | 65 | 2,000 | -100 |
| ROM, 10-150 mm | 65 | 1,800 | -90 |
| Blue Dust/ Fines | 64 | 1,660 | -200 |
Prices w.e.f 04 May’16 in INR/MT excluding DMF@30% of royalty
Royalty@15% and other taxes extra
Source: SteelMint Research
Goa: No e-auction has been conducted so far in May’16. Latest 15th e-auction in Goa was conducted on 27 Apr’16. Base prices increased in this e-auction. Base prices for fines offered ranges from Fe 43-63% ranged from INR 500-1,200/MT. Similarly for lump (Fe 43-63%) base price was in the range of INR 500-1,200/MT. However for ROM (Fe 41-62%) base price was at INR 500-970/MT. Majority of the lots offered in the e-auction fetched flat bids and for some bids went up by INR 500-600/MT.
Karnataka: Iron ore e-auction base prices in Karnataka had moved up in Apr’16, but in May’16 they continue to remain more or less at similar levels.
- NMDC-For Donimalai mines bid prices are as follows: lump (Fe 62%)-INR 1,910/MT and fines (Fe 60.2%)-INR 1,650/MT. For Kumaraswamy mines bid prices are as follows: lump (Fe 63.1%)-INR 1,800-1,830/MT and fines (Fe 57%)-INR 1,150/MT
- Private miners- Base prices remained unchanged against last month. Bid prices for Vyasankere iron ore mines remained as follows: fines (Fe 65%)-INR 2,060/MT and lump (Fe 65%)-INR 2,165/MT. Sesa Sterlite’s fines (Fe 57%) bid prices stood at INR 650/MT and lump (Fe 60%) stood at INR 1,361/MT. (Karnataka iron ore e-auction prices mentioned are basic).
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