With the Supreme Court’s order on suspending operation at 26 mines in Odisha, which are running under deemed renewal, has severely impacted supply of Iron ore.
With this order, almost 18-19 MnT of Iron ore supply will be disturbed on an annual basis (excluding Tata Steel & SAIL).
After aggregating SteelMint’s data, it is analyzed that Sponge iron prices are on fire as it touched over 2 years high. Current offers are hovering in the range of INR 21,000-24,000/MT.
Interestingly, difference between Sponge & Scrap has reduced sharply and it is expected that smelters will go for Scrap over Sponge forcing more Scrap imports.
Speaking to miners & officials, situation looks tough in terms of Iron ore supply from odisha. All those mines which are operational have either raised their offers by INR 500/MT or preferred to keep their sales closed.
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