Odisha based merchant miners had raised iron ore lump prices by INR 300-400/MT and fines prices by INR 150/MT in mid of Mar’17. Prior to this they had raised lump prices by INR 300/MT towards the end of Feb’17. Sharp increase in sponge prices resulted in increase in iron ore offers.
On the other hand, NMDC (C.G.) had raised iron ore prices up to INR 100/MT M-o-M in Mar’17.
SteelMint in talk with major merchant miners in Odisha learned that iron ore booking inquiries have reduced post hike in prices. Also some mines like Indrani Patnaik etc which had completely utilised EC limit for this fiscal will become operational in Apr’17 adding on to the iron ore supply in the state. Thus, Odisha miners may wait for making next revision in prices.
Key highlights that will govern iron ore prices for Apr’17 –
1. C.G. based sponge plants’ iron ore sourcing from NMDC moved up sharply in Mar’17 – C.G. based sponge units procured 57 rakes of iron ore from NMDC (C.G.) in Mar’17*. In Feb’17, they had sourced 34 rakes. Sharp hike in sponge prices in Mar’17 resulted in increased iron ore offtake from NMDC, Chhattisgarh.
2. JSW Steel’s iron ore sourcing from NMDC (C.G.) reduces to half- JSW Steel has procured 20 rakes in Mar’17*. Last month it had sourced 48 rakes from NMDC (C.G.).
3. RINL’s iron ore procurement from NMDC (C.G.) down in Mar’17 – RINL (Vizag Steel) has procured 109 iron ore rakes in Mar’17* against 131 rakes in Feb’17.
4. Domestic pellet prices increased in Mar’17 – Strengthening P-DRI prices has led to increase in domestic pellet offers as well. Pellet prices in Raipur have gone up by INR 300/MT in last one month and are presently heard to be in the range of INR 5,200-5,300/MT (basic). In similar lines, eastern India pellet offers have also moved up this month.
5. Spot iron ore prices in China hit two-month low in Mar’17 – Iron ore fines (Fe 62%) index this month hit two-month low at USD 81/MT, CFR China. Increased iron ore inventory at Chinese major ports has resulted in drop in spot iron ore prices in China.
6. Domestic sponge iron prices gained momentum in Mar’17 – Sponge iron prices in India have gone up by around INR 1,000/MT M-o-M. Presently sponge iron price movements are as follows: Durgapur (78 FeM) – INR 17,150/MT del, Ex-Raipur (80 FeM) – INR 18,600/MT, Ex-Bellary (78 FeM) – INR 18,100/MT.
7. Indian steel makers to significantly hike finished steel prices in Apr’17 – Major finished flat producers are likely to raise flat steel product prices by INR 1,000-2,000/MT next month. Hike in raw material cost and lesser domestic availability over increased exports is likely to push up offers next month.
Note: * indicates data updated till 27 Mar’17
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