Rungta Mines and Essel Mining, maintain Iron ore prices for second half of June 2014. The miners had increased prices by INR 400-500/MT w.e.f. 20 May, 2014, which remained unchanged in the beginning of June 2014.
Rungta Mines and Essel Mining, Odisha’s largest merchant miners together have an annual production capacity of over 20 MnT. Rungta Mines annual production stands at about 12 MnT. Generally, miners review prices on fortnightly basis.
The miners had increased prices by INR 400-500/MT w.e.f. 20 May, 2014, post Supreme Court decision on suspension of mining operations for 26 Iron ore and Manganese ore mines (includes 10 merchant Iron ore mines) running under 2nd deemed renewal. The 10 merchant mines produced 19.1 MnT Iron ore in FY14.
According to company officials, “Domestic raw material prices have remained under pressure. Iron Pellet and Sponge iron prices weakened by about INR 1,400/MT and INR 900/MT respectively, within a week. Thus, we decided to hold Iron ore prices at previous levels as market cannot absorb any increase in the prices.”
Odisha government has not allowed liquidation of Iron ore lying at mines head, which was mined before 16 May, 2014.
Indrani Patnaik have hold back its booking orders as of now. Serajuddin is yet to review prices. Only Rungta and Essel are supplying Iron ore presently.
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Rungta Mines |
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|
Place |
Size (mm) |
Grade |
Fe% |
Prices |
|
Joda |
5-18 |
DR |
65 |
7,100 |
|
5-18 |
DR |
63 |
6,800 |
|
|
10-30 |
BF |
65 |
6,450 |
|
|
10-30 |
BF |
63 |
6,050 |
|
|
Fines |
– |
63 |
2,950 |
|
|
Fines |
– |
60 |
2,300 |
|
|
Koira |
5-18 |
DR |
62 |
6,150 |
|
10-30 |
BF |
62 |
5,550 |
|
|
Fines |
– |
62 |
3,050 |
|
|
Fines |
– |
60 |
2,400 |
|
Prices in INR/MT, including royalty
Prices are as per loaded to wagons
Source: SteelMint Research
In spite of having Iron ore Fines of higher grade (Fe 63), the prices of Rungta Joda Fines are less than those of Rungta Koira mines (Fe 62). This is because of high loading cost at Rungta Koira mines.
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