Essel mining – a major Odisha based merchant miner has increased its iron ore fines offer by INR 100/t w.e.f 16th June 2020. Current offers from its Koira mines for Fe 63% fines stands at INR 1,875/t and that for Fe 62% at INR 1,675/t (Ex-mines, including Royalty, DMF & NMET) respectively. The miner has lept lumps offer unchanged.
At present circumstances, a limited quantity of high-grade iron ore fines is available with the few miners, as bidders of auctioned mining leases are yet to start production. Also, the prevailing rainy season may also lead to a tight supply side.
SteelMint’s assessment for Odisha iron ore fines (Fe 63%) stands at INR 1,800-2,000/t (Ex-mines, including Royalty, DMF & NMET) and for lumps 5-18 mm is around INR 3,400-3,600/MT (Ex-mines, including Royalty, DMF & NMET).
Last month’s dispatch overview-:
Essel mining dispatches for the month of May’20 increased multiple times m-o-m to 0.15 mn t, as against 0.02 mn t in Apr’20. With ramping up of steel output, iron ore dispatches also improved last month.
Odisha- India’s largest iron ore producing state recorded total merchant iron ore dispatches at 2.46 mn t in May’20, rebounding by 88% as against 1.31 mn t in Apr’20. The figures exclude movement for export and dispatches of miners- SAIL & Tata Steel.
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