India’s largest iron ore producer – National Mineral Development Corporation (NMDC) has kept iron ore prices unchanged for May’17 deliveries. NMDC achieved around 20% yearly growth in its iron ore output last fiscal and produced 34.03 MnT iron ore. It operates iron ore mines in Chhattisgarh and Karnataka.
Since Mar’17, the miner has maintained iron ore prices at same levels.
NMDC (C.G.) iron ore prices for May’17
|
Size |
Grade (Fe %) | Prices |
Change |
| 10-40 mm, DR CLO | 67 | 2,790 | = |
| Baila lump , 6-40 mm | 65 | 2,425 | = |
| ROM, 10-150 mm | 65 | 2,195 | = |
| Blue Dust/Fines | 64 | 2,185 | = |
F.O.R prices in INR/MT
Royalty, DMF, NMET & other taxes extra
Source: SteelMint Research
C.G. based units resume iron ore procurement dropped significantly from NMDC in Apr’17 – Chhattisgarh based sponge units have sharply reduced iron ore procurement from NMDC Bailadila mines in Apr’17 compared to that in Mar’17. They sourced 19 rakes in Apr’17 compared to 67 rakes in Mar’17.
Trade activities in Indian sponge market was good towards the beginning of Apr’17, however later prices plunged over less inquiries.
Iron ore sourcing from outside state based units increased significantly last month. NMDC loaded 276 rakes in Apr’17 for supply to outside based units compared to 217 rakes in Mar’17. JSW Steel’s iron ore sourcing jumped almost three-fold from 21 rakes in Mar’17 to 66 rakes in Apr’17. On similar lines, Vizag Steel raised its iron ore sourcing from 126 rakes in Mar’17 to 163 rakes in Apr’17.
Low parity in exports reduce movement for exports – On the other side, iron ore prices in global market fell sharply last month. Spot iron ore prices in China declined amid fall in steel prices. Monthly average Fe 62% fines index dropped from USD 87/MT, CFR China in Mar’17 to USD 70/MT, CFR China in Apr’17. Following this NMDC’s movement for export fell from 74 rakes in Mar’17 to 45 rakes in Apr’17.
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