After continuing same prices since Mar’17, India’s largest iron ore producer – National Mineral Development Corporation (NMDC) has announced price cut for Jul’17 deliveries. The miner has cut prices up to 9% for Jul’17 deliveries. Baila lump and fines prices have come down by INR 200/MT M-o-M, ROM prices have been reduced by INR 180/MT and that of DR-CLO have come down by INR 230/MT.
Chhattisgarh based units have significantly reduced iron ore sourcing from NMDC (C.G.) since past few months. C.G. based sponge iron units sourced 25 rakes from NMDC (C.G.) in Jun’17 compared to 12 rakes in May’17. Notably C.G. based units procure 60 to 70 rakes on an average in a month from NMDC.
Iron ore procurement of outside C.G. based units decreased 22% M-o-M to 183 rakes in Jun’17 against 235 rakes in May’17. RINL (Vizag Steel) sourced 122 iron ore rakes in Jun’17 against 147 rakes in May’17, down 17% M-o-M. JSW Steel’s iron ore procurement from NMDC dropped 18% M-o-M from 51 rakes in May’17 to 42 rakes in Jun’17.
NMDC (C.G.) iron ore prices for Jul’17
|
Size |
Grade (Fe %) | Prices | Change (in INR/MT) |
Change (in %) |
| 10-40 mm, DR CLO | 67 | 2,560 | -230 | -8% |
| Baila lump , 6-40 mm | 65 | 2,225 | -200 | -8% |
| ROM, 10-150 mm | 65 | 2,015 | -180 | -8% |
| Blue Dust/Fines | 64 | 1,985 | -200 | -9% |
F.O.R prices in INR/MT
Royalty, DMF, NMET & other taxes extra
Source: SteelMint Research
Odisha iron ore prices have also come down in Jun’17 owing to decline in sponge prices. Lump prices have fallen by INR 400-500/MT M-o-M and fines by INR 150-175/MT M-o-M in Jun’17.
On the other hand, global iron ore prices have shown a downwards movement in last 4 months making imports attractive. Monthly average iron ore fines (Fe 62%) index fell sharply from USD 70/MT, CFR China in Apr’17 to USD 61/MT, CFR China in May’17. In Jun’17 the average prices fell further and stood at USD 57/MT, CFR China.
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