- Odisha miners may increase Iron Ore fines prices by Rs 200-300/MT
- Rising global prices and falling Rupee against USD should support prices
- Currently, 63% Iron Ore fines are sold at Rs 1,500/tonne (Ex-Mines Odisha, Incld Royalty)
- Indian government planning to cut export duty on Iron Ore by 10%
There are strong chances that iron ore miners based in Odisha may increase iron ore fines prices in the month of September primarily on improved export parity and secondly on the hope of reduction in export duty by 10%.
Currently prices are hovering in the range of Rs 1,500 per tonne Ex-mines basis (including royalty) and truck freight charges to Paradip port stands at around Rs 1,900-2,000 per tonne. Even if fines prices go up by Rs 200 per tonne, exporters will still make profits, said trade sources.
Private miners say that prices of fines could move up, as falling Rupee against US Dollar has fetched better realization for exports and the further reduction in export duty will give us a scope to raise our prices. The iron ore fines rates have come down significantly in the last one year, from Rs 2,200 per tonne to Rs 1,500, owing to falling exports and several restrictions imposed by the government.
In similar lines, Indian exporters say that some hike in iron fines prices are justified, provided Rupee stay at similar levels and truck freight do not shoot up significantly. Some miners are expected to raise their offers in the month of September, exporters said.
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