With Iron ore lumps scarcity getting deeper after the Supreme Court’s order of suspending 26 mines running under deemed renewal in Odisha, Sponge manufacturers have started charging premium for Sponge iron made from Calibrated lumps ore (C-DRI).
Currently, C-DRI (80 FeM) is being offered at around INR 21,900-22,000/MT on Ex-works basis. Some big sized manufacturers are also offering at INR 22,100-22,200/MT for the same grade.
”Only few Sponge manufacturers in Raipur have Iron ore lumps stock, as Iron ore movement from Odisha has reduced drastically,” said a Sponge iron manufacturer based in Raipur, Chhattisgarh.
According to SteelMint’s railway movement tracker, it was noted that number of rakes moved from Odisha to Chhattisgarh have fallen from 256 in Apr’14 to 250 in May’14 and to 110 in Jun’14 (till 20 Jun, 2014).
It is also noticeable that price difference between Iron ore based Sponge and Pellet based Sponge have moved up to INR 2,000/MT, which had been upto INR 1,200-1,300/MT before Odisha mining ban.
The Supreme Court’s stay order on mining operations in Odisha on 16 May, 2014 has directly impacted merchant supply of 19 MnT Iron ore on an annual basis.
Odisha Directorate of Mines has requested the state government to permit sale and dispatches of stock lying at mines, which have been closed.
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