- NMDC announces hike in base prices for auction
- Supplies improve as NMDC labour strike ends
Domestic low-grade iron ore fines (Fe 57%) prices witnessed an increase this week in Karnataka’s Bellary. BigMint’s weekly index for low-grade iron ore fines (Fe 57%) stood at INR 3,500/t ($42/t) ex-mines Bellary (excluding taxes), a w-o-w rise of INR 200/t ($2/t).
The end of labour strike at NMDC’s Donimalai mines, coupled with active trades in e-auctions and direct sales and firm sponge iron prices, have supported low-grade offers, BigMint notes.
Rationale:
- Three (3) trades were recorded, one via direct sales and two via e-auction, out of which only one was considered in this publishing window and was accorded 50% weightage.
- Sixteen (16) offers and indicative prices were reported, out of which fourteen (14) were considered as T2 trades receiving a 50% weightage.
Factors supporting offers:
NMDC hikes iron ore price for auction: NMDC Karnataka has announced list prices for its auctions of iron ore from Kumaraswamy mines for which it has increased fines (Fe 62%) and lumps (Fe 64%) by INR 350/t and INR 220/t, respectively . However, the Donimalai base price announcement will be on the auction day. Meanwhile, NMDC has scheduled an auction from its Kumaraswamy mines in Karnataka for 236,000 t of iron ore on 30 May. Out of the total quantity, 144,000 t are fines (Fe 58-62.73%) and 92,000 t are lumps (10-40 mm, Fe 59.12-62.37%). Prices are on FOR, ex- stockpile/mines basis and inclusive of royalty, DMF and NMETF.
Low-grade export index falls w-o-w: BigMint’s weekly Indian low-grade iron ore fines (Fe 57%) export index fell by $2/t w-o-w to $66.5/tonne (t) FOB east coast on 30 May 2024. The Indian seaborne market continued to face pressure, with only a few exporters finalising deals while others remained cautious. The discount hovered at around 23-25% for Indian low-grade fines.
Pellet prices stable in Bellary: Pellet prices in Bellary, Karnataka, remained stable w-o-w at INR 10,550/t ($127/t) exw. Increase in sponge iron (CDRI) prices by INR 150/t ($2/t) to INR 29,150/t ($350/t) have supported pellet prices. Meanwhile, decent trading activities were witnessed in the region.
Karnataka iron ore sales scenario (22-30 May, 2024)
Outlook
Domestic low-grade iron ore prices are expected to remain supported due to increase in demand as well as availability of material in mines.