Odisha’s based major merchant iron ore miners – Rungta, Serajuddin, KJS Ahluwalia, Kaypee Enterprises, RP Sao and KN Ram have today announced a further hike in iron ore prices by around INR 500/MT in both lumps and fines. This is the third hike in the iron ore prices in last 15 days time. As per data maintained with SteelMint, iron ore lump prices have hit almost 6 years high as these price levels were last seen in mid of 2012.
Other major Odisha miners are also likely to follow suit and announce revised prices shortly.
After today’s price hike, trade reference prices for 5-18 mm (Fe 63%) will be around INR 6,100-6,350/MT and for fines (Fe 63%) will be around INR 3,500/MT. Prices mentioned are ex-miners, inclusive of Royalty, DMF & NMET.
An extreme shortage of raw material amid monsoons, high pellet prices in domestic and exports along with a hike in semi-finished steel prices have collectively pushed up iron ore prices.
Domestic pellet prices in Barbil sharply increased at INR 8,400/MT (loaded) this week and central India (Raipur) pellet prices have shooted up to INR 9,500/MT.
C-DRI prices in Durgapur have increased sharply by INR 850/MT W-o-W to INR 25,300/MT as against INR 24,450/MT in a week ago.
In the last week of August, miners had raised prices by INR 600-700/MT in both lump and fines via two price hikes. However, miners are heard offering discounts on list prices as per quantity of purchase.
Rungta Mines is Odisha’s largest merchant miner with the production of 25.3 MnT in FY18. Serajuddin is Odisha’s 2nd largest merchant miner with the production capacity of 15.15 MnT p.a and produced 9 MnT in last fiscal. KJS Ahluwalia produced 5.4 MnT iron ore in FY’18. RP Sao iron ore mine has EC limit of around 5.7 MnT p.a.
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