Iron ore miners based in Odisha have made further reductions on iron ore fines prices this week on weak demand, though discounts are not officially announced, said an industry source.
With sinking exports of iron ore from India and also average demand from domestic market has compelled miners to cut offers by Rs 200-250/t. Currently iron fines of 63% Fe is trading in the range on Rs 1,700-1,800/t (Ex-Mines, including royalty) which is officially offered at Rs 1,900-2,050/t (Ex-Mines, including royalty).
“Demand for iron fines has been week, although iron lumps demand is decent. There are not many inquiries for fines. This is the situation with other miners as well.” said a miner based in Odisha.
Federation of Indian Minerals stated that exports can dip to all time low of 15 mn tonnes in 2012.Also in an official statement released by ministry of Indian mines state that “ore produced by captive mines should exclusively used for own use and it can neither be exported or sold in domestic market.”
With Indian government focusing on increasing value addition by domestic manufacturers, future of exports of iron ore does not look bright at all.
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