India: NMDC Rolls Over Iron Ore Prices for Aug’17 Deliveries

India’s largest iron ore producer – National Mineral Development Corporation (NMDC) has announced to keep the prices unchanged for Aug’17 deliveries. The miner had cut prices up to 9% for Jul’17 deliveries. Baila lump and fines prices were brought down by INR 200/MT M-o-M.

C.G. based sponge units iron ore sourcing up by 44% in Jul’17 – C.G. based sponge iron units sourced 36 rakes from NMDC (C.G.) in Jul’17 compared to 25 rakes in Jun’17. It is to be noted that C.G. based units procure 60 to 70 rakes on an average in a month from NMDC. Sponge prices have been up around INR 400-800/MT in Jul’17 due to the scarcity and higher prices of raw material like coking coal which resulted in lowered production.

Other state units reduced iron ore sourcing: It is to be noted that Iron ore procurement of outside C.G. based units have decreased 6% M-o-M to 178 rakes in Jul’17 against 189 rakes in Jun’17. RINL (Vizag Steel) sourced 79 iron ore rakes in Jul’17 against 128 rakes in Jun’17. JSW Steel’s iron ore procurement from NMDC dropped from 42 rakes in Jun’17 to 31 rakes in Jul’17.

Southern India based pellet maker – KIOCL sourced 58 rakes from NMDC (C.G.) last month compared to 15 rakes in Jun’17.

Exports: NMDC loaded 39 rakes for export in Jul’17 compared to 61 rakes in Jun’17.

NMDC (C.G.) iron ore prices for Aug’17

F.O.R prices in INR/MT
Royalty, DMF, NMET
Source: SteelMint Research

Odisha merchant miners have hold the price revision after the Supreme Court order on illegal mining case. The court has ordered 100% penalty to be paid on price of minerals as rationalized by CEC (Central Empowered Committee).