Amid increase in royalty, both lump and fines prices have increased by INR 300/MT (USD 4).
Odisha’s major merchant iron ore miners like Rungta Mines, KJS Ahluwalia and Kaypee Enterprises have today announced hike in iron ore prices by INR 300/MT in lumps and fines.
The increase in prices owes to increase in royalty of iron ore. According to IBM (Indian Bureau of Mines), the Average sale prices of iron ore for Odisha released for the month of April’18 depicted a rise in royalty for iron ore lumps. The sale price for iron ore lumps (Fe 60-62%) in Apr’18 increased by INR 99/MT to INR 3,181/MT against being INR 3,082/MT for the month of Mar’18. The average sale price for iron ore lumps (above Fe 65%) increased by INR 454/MT to INR 5,179/MT in Apr’18 against INR 4,725/MT in Mar’18.
Besides increasing Royalty, logistics bottlenecks still persist in eastern India, resulting in reduced rake availability for transportation of iron ore. Amid rake availability issues, domestic pellet prices in eastern India have moved up by INR 400-600/MT in a month’s time. All these factors have collectively resulted in iron ore price hike.
Odisha Iron ore Prices
| Miner | Material Type (Size mm) | Grade (Fe %) | Prices in INR/MT |
| Rungta Mines* | Fines | 63% | 3,100 |
| 5-18 mm | 63% | 6,100 | |
| 10-30 mm | 63% | 5,750 | |
| KJS Ahluwalia | Fines | 63% | 2,625 |
| 5-18 mm | 63% | 5,450 | |
| 10-30 mm | 63% | 4,800 | |
| Kaypee Enterprises | Fines | 63% | 2,625 |
| 5-18 mm | 63% | 4,950 | |
| 10-30 mm | 63% | 4,700 | |
| RP Sao | Fines | 63% | 2,600 |
| 5-18 mm | 63% | 5,400 |
*prices are loaded to wagons, including Royalty, DMF & NMET w.e.f 03 Jul’18
KJS & Kaypee prices mentioned are ex-mines, inclusive of Royalty, DMF & NMET, GST extra w.e.f 02 Jul’18
Prices mentioned above for one rake. However, miners are giving quantity discounts on bulk purchases
Source: SteelMint Research
Odisha is India’s largest iron ore producing state which accounts for nearly 50% share in country’s production. Rungta Mines is Odisha’s largest miner with production of 25.25 MnT in FY18. KJS Ahluwalia recorded a production of around 5.4 MnT.
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