SteelMint’s weekly Odisha iron ore fines (Fe 62%) index has remained stable at INR 3,400/t ex-mines (including royalty, DMF and NMET). Majority of Odisha-based miners have put there offers on hold today post-roll back of export duties.
Market participants are expecting Odisha miners to raise offers by INR 500-700/t early next week following the price rally in pellets. Central India and eastern India-based pellets players have raised offers today by INR 1,000-1,500/t. In a highly significant development late on 18 November 2022, the government rolled back the hefty export duties on steel and steelmaking raw materials. Export duty on high grade ore and pellets has been reduced to nil.
Rationale:
- T1- One deal was reported for this week from OMC and therefore taken into consideration for the index calculation and given 50% weightage.
- T2- SteelMint received three (3) offers and indicative prices under T2 trade deals in this publishing window out of which two (2) were taken into consideration and given 50% weightage. To check SteelMint’s iron ore assessment, pricing methodology, and specification documents Click here
NMDC Chhattisgarh cuts iron ore prices by up to 10% for November – 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’s auction from Karnataka gets an active response, prices fall – NMDC conducted an auction for 600,000 t of iron ore from its Donimalai mines in Karnataka on 17 Nov’22. According to sources, the entire material was sold at the floor price. Notably, NMDC has reduced the base price for iron ore fines by up to INR 150/t for the auction, whereas the base price for lumps remains unchanged.
Outlook: Indian iron ore miners are likely to open fresh offers early next week, after having better clarity on pellets and sponge prices.
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