India is working on a formula that might act like a cap on iron ore prices, said Union Steel Secretary – Aruna Sharma.
“There needs to be some sharing of the profits. We are working on the end-formula, and maybe we will come up with the logic very soon,” she said.
The price of iron ore “should not move like the sensex” as such price fluctuations make it very difficult for an industry to work, she added.
Scenario of domestic iron ore prices in India – In the month of Mar’17, Odisha based merchant miners have raised iron ore lump prices up to INR 300/MT M-o-M. On the other hand, NMDC (C.G.) has raised iron ore prices up to INR 100/MT for March deliveries. On similar lines, Karnataka e-auction base prices have also moved up.
Iron ore prices in China on uptrend – Spot iron ore prices in China are witnessing uptrend this year amid higher steel prices. In FY17 (from Apr-Feb’17), monthly average Fe 62% iron ore fines index was recorded at USD 65/MT, CFR China against USD 51/MT, CFR China.
~Sourced
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