India: Serajuddin Mines cut Iron Ore Prices upto INR 500/MT

Serajuddin Mines, Odisha’s one of the largest merchant miner with an EC (Environmental Clearance) of 15 MnT pa, has cut Iron ore prices upto INR 500/MT.

Prices have declined due to factors like increase in production, accumulating stock, rise in Pellet utilization by Sponge iron plants and falling Pellet prices in eastern region of India. The miner has cut CLO (5-18 mm) prices by INR 500/MT and fines prices by INR 200/MT.

Serajuddin & Rungta Mines Iron Ore Prices for Apr’14

Prices are loaded to wagons, including royalty & taxes extra
M-o-M: Month on Month change
Source: SteelMint

On 01 Apr 2014, Rungta & Essel mining, the big merchant miners in the state, cut Iron ore offers by INR 300/MT. Speaking to Sponge iron manufacturers in eastern region of India, SteelMint assessed that current price levels of Iron ore will help to regain buying interest.

Odisha is the India’s largest Iron ore producing state with an annual production of 62-63 MnT, out of which 28 MnT is available for captive consumption; the rest 34 MnT for merchant sale.

Odisha Miners will continue to Reserve 50% of Iron Ore produced for Sales within State

According to High Court judgement, 50:50 Iron ore sales rule has come in favor of Odisha Government. Odisha Iron ore miners will continue to reserve 50% of their production for steel mills within the state.  

NMDC may declare Iron Ore Prices on 03 Apr,2014

NMDC, India’s largest Iron ore miner with an annual production of 29 MnT, may declare Iron ore prices on 03 Apr, 2014. Market participants anticipate that prices may come down by INR 150-200/MT looking at low prices of Iron ore in Odisha.

In a study conducted by SteelMint & Steel-360, it is assessed that India’s Sponge iron production stood at around 23 MnT in FY14 and nearly 45% of it was produced using Iron Pellets.