- Monsoon disruptions tighten iron ore spot availability
- Stronger sponge iron realisations support raw material demand
Lloyds Metals and Energy has raised iron ore fines offers by INR 150/t ($2/t) and pellet offers by INR 250/t ($3/t) in Chandrapur, Maharashtra, effective 1 October. The revision follows the miner’s previous increase in mid-September and reflects tighter ore availability amid monsoon-related mining and logistics disruptions, lower production and improved sponge iron and finished steel realisations.
Following the revision, Lloyds’ pellet offers rose to INR 11,750/t ($122/t) ex-Chandrapur, while fines FOR Raipur offers were heard at around INR 7,650/t ($80/t).
Stronger sponge iron realisations have improved producers’ ability to absorb higher raw material costs. Monthly average pellet-based direct reduced iron (P-DRI) prices in Hyderabad rose by INR 1,600/t ($17/t) m-o-m to INR 27,700/t ex-works in August to date, supporting conversion economics and pellet demand.
Broader iron ore prices have also strengthened. BigMint’s Odisha Fe 62% iron ore fines assessment rose by INR 300/t ($3/t) w-o-w to around INR 5,500/t ($57/t) ex-mines in the week ended 26 September, reaching a more than four-month high. The increase followed Odisha Mining Corporation’s higher base prices for its 19 September auction, prompting miners to raise offers.
Lloyds reported record H1FY’27 iron ore production of 10 mnt, up 36% y-o-y from 7.4 mnt in H1FY’26. The company remains on track to produce 26 mnt in FY’27, excluding 8.7 mnt of BHQ that will be processed after beneficiation plants are commissioned.
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