“Iron Ore Prices likely to remain Unchanged in March”- Odisha Miners

Iron ore prices in Odisha, India’s largest Iron ore producing state seem to remain unchanged in March, 2014, according to merchant miners.

SteelMint assessed that prices will remain unaltered for reasons that are mentioned.

1. Fewer permits for Outside State Sale

Trade sources say, with the state government’s rule of 50:50 that signifies sale of 50% of production within the state and rest 50% to outside state. Most of the miners have used their limit for sale of Iron ore to outside Odisha and within the state, however demand is not so strong. It will not make sense for miners to cut their prices now, when they are not able to sale their ore outside the state.

Sources also highlight that miners will think over revising prices in April, 2014 (next financial year i.e. FY15) when new permits will be issued.

2. Stable Demand from Sponge Iron Manufacturers

Sponge iron units which are located outside the state are struggling to source their raw material from Odisha; Sponge prices have been stable. Whereas, Sponge iron units located within the state are not interested to buy at these prices.

Trade sources highlight, “Iron ore prices may come down owing to falling Iron pellet prices (substitute of Iron ore) in Odisha, which may put pressure on miners to cut their prices. However, chances are high that miners will review demand-supply situation in April and will take a call.”

Current Iron Ore Prices

Odisha Prices loaded to wagons; including Royalty
* Prices are Ex-mines: including Royalty
NMDC Basic Prices including royalty 10%
Source: SteelMint