India: Odisha’s KJS Ahluwalia Mines Increase Iron Ore Prices

Amid limited iron ore rake availability and increase in domestic pellet offers, Odisha based miner has raised prices today.

Odisha’s merchant iron ore producer – KJS Ahluwalia and Kaypee Enterprises increased iron ore prices by INR 200/MT in lumps and INR 150/MT in fines w.e.f today (4th June 2018).

KJS Ahluwalia is third largest merchant miners in Odisha and has produced 5.4 MnT iron ore during Apr’17-Feb’18.

Miner has increased iron ore prices amid iron ore rake availability issue prevailing in eastern India. Market participants mentioned that with iron ore rakes being diverted for carrying coal to power plants, iron ore evacuation from mines has become difficult. Sources expect the problem to persist for a month’s time.

Last week, iron pellets prices in eastern India have increased sharply by INR 450-650/MT W-o-W supported by sponge prices in eastern India.

In another reason, as the rainy season has approaching nearer results in reduced production. That might also be the reason for increase iron ore prices.

As per the sources, this is the seasonal effect which will be normalized after the rainy season and improvement in rake availability. Iron ore supply in Odisha has increased as RP Sao mines also resumed dispatches last month. The iron ore miner has EC limit of around 5.7 MnT p.a. and is situated in Guali, Joda.

KJS Ahluwalia Mines Prices w.e.f 4th Jun’18

Prices mentioned are ex-mines, inclusive of Royalty, DMF & NMET, GST extra
Source: SteelMint Research

Kaypee Enterprises Mines Prices w.e.f 4th Jun’18

Prices mentioned are ex-mines, inclusive of Royalty, DMF & NMET, GST extra
Source: SteelMint Research

Both the miners are offering a discount on fines on bulk purchases and discounted iron ore price at INR 2200/MT (ex-mines) w.e.f from today (4th June 2018).