- Monsoon disruptions tighten domestic material availability
- Firmer sponge iron and semi-finished steel prices support buying
Lloyds Metals and Energy has increased its iron ore fines, lumps and pellet offers in Chandrapur, Maharashtra, effective 31 July, supported by improving domestic market fundamentals and tightening raw material availability during the monsoon. Iron ore fines (Fe 63%) offers increased by INR 250/t to INR 6,550/t FOR Balharshah, while lump offers were revised to INR 9,750/t increased by INR 250/t and pellet offers to INR 10,500/t ex-works. The revision follows the company’s previous price cut announced on 22 May.
The upward revision was primarily driven by tightening iron ore availability as heavy monsoon rainfall disrupted mining operations, transportation and dispatches across several producing regions, reducing spot material availability. At the same time, firm outcomes in recent Odisha iron ore auctions reinforced sellers’ confidence and supported higher offer levels.
On the demand side, improving semi-finished steel prices and a modest recovery in sponge iron realisations strengthened raw material procurement. Monthly average sponge iron (PDRI) prices in Hyderabad increased by INR 150/t m-o-m to INR 26,100/t ex-works in July, encouraging DRI producers to replenish inventories of lump ore and pellets, their key feedstocks.
Overall, seasonal supply constraints coupled with improved downstream steel fundamentals have strengthened domestic iron ore sentiment, allowing producers such as Lloyds Metals to implement higher offer prices despite the ongoing monsoon period.
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