NMDC Increases Iron Ore Prices Up to 24% for Oct’16 Deliveries

The miner raised lump prices by INR 400-460/MT, ROM by INR 360/MT and fines prices by INR 300/MT.

National Mineral Development Corporation (NMDC) – India’s largest iron ore producer raised iron ore prices by INR 300-460/MT for Oct’16. Last month, the miner had rolled over iron ore prices.

Factors determining NMDC’s iron ore price rise –

Improved supply from Bailadila mines – NMDC’s iron ore supply from Bailadila mines increased by 17% in Sept’16. NMDC supplied 314 rakes of iron ore from its Bailadila mines in Chhattisgarh last month compared to 268 rakes in Aug’16. Chhattisgarh based sponge iron units raised iron ore procurement significantly by 64% last month and procured 64 rakes from NMDC (C.G.) in Sept’16 compared to 39 rakes in Aug’16. In addition, outside state units primarily Vizag Steel, KIOCL and Essar Steel raised iron ore procurement significantly last month.

Increase in Odisha iron ore prices – Amid increase in domestic sponge prices, Odisha merchant miners raised iron ore prices sharply. Lump prices have gone up by INR 600-750/MT and fines, by INR 100-200/MT M-o-M.

Uptrend in sponge iron prices – Amid increase in iron ore and coal prices, domestic sponge iron prices also rose sharply. C-DRI (80 FeM) prices in Raipur increased by INR 1,700/MT M-o-M in Sept’16 and are presently assessed at INR 15,400/MT (ex-works)

NMDC iron ore prices for Oct’16

F.O.R prices in INR/MT  w.e.f 05 Oct’16
Royalty, DMF, NMET & other taxes extra
Source: SteelMint Research

NMDC’s iron ore export remain stable in Sept’16 – NMDC’s iron ore exports remained stable on monthly premises. It exported 0.22 MnT iron ore in Sept’16.