President of Chhattisgarh Sponge Iron Manufacturers Association (CGSIMA) Mr. Anil Nachrani has requested NMDC Chairman to lower lumps prices for the month of July.
CGSIMA President shared his outlook with SteelMint
W.e.f 16 June, cost of manufacturing one ton of Sponge iron from NMDC ore is standing at Rs 21,529/MT. Whereas, from KJS and Sirajuddin, it is lower at Rs 19,617/MT and Rs 19,987/MT respectively. By procuring Pellets from local sellers, the costing comes to Rs 19,470/MT.
Odisha miners have reduced their prices by almost Rs 1,500/MT between April, May and mid June in line with market trend.
It is more economical for Sponge/Steel makers to use Odisha ore which is of better quality due to high tumbling strength, less laterite and other porous material like BHQ etc.
Miners in Odisha are further inclined to lower the rates of Iron ore in the rainy season due to low off take of finished products.
NMDC Iron ore is of soft nature and low tumbler index (less than 84%).
While comparing the rates of Iron ore between Odisha, NMDC and Pellets, the landed cost of Iron ore from NMDC is Rs 1,000-1,500/MT on higher side.
Also, DRI industry is passing through a crucial phase due to poor demand of Steel and falling steel prices in past 3 months.
Costing of Sponge iron using NMDC's iron is higher by Rs 1,500/MT and NMDC, being a mines situated in the state of Chhattisgarh should encourage local entrepreneurs so that they may develop and mature to be value added ancillaries.
For more details, contact
Seema Goenka
(seema@steelmint.com)
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