India’s largest iron ore producer – National Mineral Development Corporation (NMDC) has announced price hike up to 9% for Sept’17 deliveries. Baila lump and fines prices have moved up by INR 175/MT, DR CLO by INR 240/MT and ROM by INR 185/MT.
The miner had rolled over iron ore prices for Aug’17.
The reasons behind NMDC price hike could be attributed to following facts:
1. Price hike by Odisha miners – Odisha based major merchant miners had raised iron ore prices twice in Aug’17. Lump prices have gone upto INR 600/MT and that of fines witnessed increase upto INR 300/MT.
2. Rise in global iron ore prices – Monthly average iron ore fines (Fe 62%) index increased by USD 9/MT M-o-M from USD 67/MT in Jul’17 to USD 76/MT, CFR China in Aug’17. Hike in global iron ore prices made imports costly resulting in reduced import bookings by Indian steel mills.
3. Surge in sponge prices – Monthly average C-DRI and P-DRI prices in Raipur increased by 11.6% and 13.9% M-o-M respectively in Aug’17.
4. Domestic flat steel prices in India on uptrend – Amid surge in global steel prices, major Indian steel mills have planned to raise flat steel prices further by INR 1,500/MT for Sept’17. In Aug’17, they had raised prices by around INR 2,000-2,400/MT M-o-M.
5. NMDC (C.G.) iron ore dispatches in Aug’17 – NMDC dispatched 264 iron ore rakes in total from its Chhattisgarh mines in Aug’17 against 253 rakes in Jul’17. C.G. based sponge units increased sourcing by 17% M-o-M to 42 rakes in Aug’17.
NMDC (C.G.) iron ore prices for Sept’17
| Size | Grade (Fe %) | Prices | Change (in INR/MT) | Change (in %) |
| 10-40 mm, DR CLO | 67 | 2,800 | +240 | +9% |
| Baila lump , 6-40 mm | 65 | 2,400 | +175 | +8% |
| ROM, 10-150 mm | 65 | 2,200 | +185 | +9% |
| Blue Dust/Fines | 64 | 2,160 | +175 | +9% |
F.O.R prices in INR/MT w.e.f 02 Sept’17
Royalty, DMF, NMET and other taxes extra
Source: SteelMint Research
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