India’s largest merchant iron ore mining company, NMDC, has cut iron ore prices for November 2022 deliveries, SteelMint learnt from reliable sources. The miner has slashed prices of lump ore by INR 300-360/t and fines by INR 300/t from its Chhattisgarh mines, effective from 17 Nov.
NMDC fixed prices for lump iron ore (65.5%, 6-40mm) at INR 3,800/t, DR CLO (Fe 67%, 10-40mm) at INR 4,560/t and iron fines (64% – 10mm) at INR 2,610/t (FoR prices, excluding royalty, DMF and NMET) with effect from today.
Factors impacting NMDC iron ore prices:
- Odisha iron ore fines index falls to two-month low: SteelMint’s weekly Odisha iron ore fines (Fe 62%) index decreased by INR 100/t to INR 3,400/t ex-mines (including royalty, DMF and NMET) on 12 November. The index has fallen to nearly a two-month low, as per SteelMint data.
- Subdued response to OMC’s iron ore auction: Odisha Mining Corporation (OMC) conducted an iron ore auction (0.75 mnt of fines and 0.65 mnt of lumps) yesterday. The miner increased the base price for fines by up to INR 350/t and lumps by up to INR 100/t against the 19 October auction. According to market sources, nearly 16,000 t of fines have been booked at the base price while the remaining lots were unsold.
- Recent imported iron ore bookings: Imported iron ore bookings to India had gained momentum when global iron ore prices plunged towards end-October. According to sources, nearly 1 mnt of high grade iron ore fines from Brazil and Canada are slated for January arrivals.
- Sponge iron prices drop to 1-year low: SteelMint’s daily sponge iron, CDRI index, dropped to 1-year low and was assessed at INR 30,450/tonne (t) exw-Rourkela on 16 November. On a monthly basis, prices have come down by INR 3,000/t.
- Indian steel prices remain under pressure: Slow activities in the domestic market, weaker global sentiments and the pressing issue of reduced export volumes since the levy of the 15% export duty in end-May 2022 are weighing on buyers’ interest in the domestic market.
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