SteelMint has learnt from its market sources that Odisha’s second largest merchant miner- Serajuddin mine has cut its iron ore lump prices by INR 400/MT and fines prices by INR 300/MT for bulk purchase w.e.f today (i.e. 20 Dec’18).
The miner’s current price in case of bulk bookings for 5-18 mm (Fe 63%) lumps is around INR 4,300/MT whereas for Fe 63% fines is around INR 1,800-1,900/MT (ex-mines, including Royalty, DMF, & NMET).
The last price cut that was announced by the miner was of INR 300-400 per tonne on 28 Nov’18. In fact, in the last week of November, Serajuddin had announced two consecutive cuts (first was on 24 Nov’18) and the price slash in total was around INR 700-800 per tonne in a week’s time.
According to sources, the miner is producing around 70,000 to 80,000 MT of iron ore per month. There has been an increase in monthly production of Serajuddin mines as it has started operations at another pit which was closed for quite some time.
Odisha based merchant miners are facing narrowed buying interest following which they are giving quantity discounts to simulate buying interest. Falling pellet prices and sponge offers have also put iron ore prices under pressure.
Another miner, Essel Mining and Industries have also announced third price cut within a month on 17 Dec’18. The miner has reduced iron ore lump prices by INR 400/MT and fines prices by INR 300/MT. Prior to this, they had slashed offers on 18 Nov and 27 Nov’18.
Why iron ore prices in Odisha have come under pressure?
Increased production after monsoon: According to data with SteelMint, the iron ore production in Odisha has increased from 6.43 MnT in Sep’18 to 9.21 MnT in Oct’18.
Falling pellet prices: Domestic pellet prices in India have come under pressure in last one month owing to falling semi-steel prices along with the decline in pellet export offers. Pellet offers in Durgapur have come down by INR 800/MT in a month’s time.
China’s shift towards low-grade iron ore: Amid falling steel prices in China, Chinese mills have shifted to the usage of low-grade iron ore fines. Thus, high-grade iron ore fines exports have slowed down from Odisha.
3rd Indian Iron Ore & Pellet Summit 18-19th Feb, Delhi NCR
Keen to keep a track of global and national iron ore prices in the coming year and how will be the scenario in 2020 mine block auctions, book your seat at SteelMint’s 3rd Iron Ore and Pellet Conference to be held on 18-19 February 2019 in Gurgaon.
Leave a Reply