India: NMDC rolls over iron ore prices for October

India’s largest merchant iron ore mining company, NMDC, has kept iron ore prices unchanged for October 2022 deliveries, SteelMint learnt from reliable sources.

NMDC fixed prices for lump iron ore (65.5%, 6-40mm) at INR 4,100/t, DR CLO (Fe 67%, 10-40mm) at INR 4,920/t and iron fines (64% – 10mm) at INR 2,910/t (FoR prices, excluding royalty, DMF and NMET) with effect from today.

Factors impacting NMDC iron ore prices:

• Odisha iron ore prices range-bound: SteelMint’s weekly Odisha iron ore fines index Fe 62% moved up by INR 100/t m-o-m to INR 3,500/t ex-mines while the Fe 63% lumps (Odisha) index remained stable at INR 6,950/t ex-mines, as assessed on 1 October. However, on a w-o-w basis, the indices remained stable for both Fe 62% fines and lumps.
• NMDC’s iron ore rake movement rises 15% m-o-m in Sep: Government-owned NMDC recorded iron ore rake movements from Chhattisgarh at 336 in September 2022, rising by 15% against 291 in August, according to data maintained with SteelMint. The figure includes movements within Chhattisgarh and to other state-based units but excludes supply to AM/NS India through slurry pipeline. Notably, a rake carries 3,850 tonnes (t) of iron ore.
• DR-CLO lots receive active bids in NMDC’s Chhattisgarh auction – NMDC conducted an iron ore auction from Chhattisgarh on 23 Sep’22 for 184,800 t of Fe 64-67% (indicative) material from the Bacheli mines, and 92,400 t (Fe64-65.50%, indicative) ore from the Kirandul mines. The entire quantity of 16,800 t of DR-CLO was booked at a premium of INR 450/t over the set base price of INR 4,957/t (excluding royalty, DMF and NMET) at the auction. The remaining lots remained unsold.
• Primary mills hike steel prices for early Oct: Indian primary mills have raised list prices of HRC, CRC and rebar by around INR 1,000/t for early October sales.
• Good Q3 steel demand prospects: The third quarter (Q3) is traditionally a good one from the construction demand perspective and hence mills are bracing for a good demand pull which will also support the price uptrend.
• China iron ore prices dip marginally:  Benchmark Fe62% fines prices moved down by around $5 m-o-m to $99/t CFR China in Sep’22. Prices fell later in Sept post mid-Autumn holidays, and increase in overall steel inventories, dampening iron ore demand.