Increasing iron ore production and comparatively lesser dispatches may put Odisha prices under pressure. Increasing stockpile at mines head may put pressure on Odisha based merchant miners to make further reduction in prices.
Iron ore prices in Odisha remained stable in the month of Jul’16 and also in the 1st week of this month merchant miners had rolled over their offers. However as per trade sources report received iron ore prices may witness reduction of INR 50-100/MT in the near short term.
Odisha iron ore dispatches fall by 8% in Jul’16
Iron ore dispatches from Odisha based mines was recorded at 4.68 MnT in Jun’16. However in Jul’16 the figure has fallen to 4.31 MnT. Thus recording a drop of 8% M-o-M. (Figures exclude captive iron ore movement of SAIL & Tata Steel).
On the other hand, Odisha’s iron ore production has strengthened sharply by 62% Y-o-Y and was recorded at 24.76 MnT. However if we exclude captive iron ore production of SAIL & Tata Steel, the figure comes out to be 20.18 MnT.
Trade-wise:
As per market sources, an Odisha based merchant miner is seen offering quantity discount of INR 100/MT in lump (5-18 mm) prices for bulk quantity purchases (more than 5 rakes) and current offers for Fe 63% lump are seen at INR 1,900/MT (ex-mines)
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