Friday, July 29,
Domestic iron ore prices are likely to rise soon due to the following factors:
1) Higher sponge iron prices
2) Recent ban by the Supreme court on mining activities in Bellary
3) Higher royalty charges – Royalty on iron ore is likely to go up to 20% from the present rate of 10%
Sponge iron prices at most of the places have moved up Rs 500-1000/MT over 10-15 days and it has brought down the conversion cost for Ingot manufacturer to Rs. 7300/MT from the standard Rs. 7500-7800/MT.
Out 148 mines in Bellary only 6-7 were operational. So, now with the Supreme Court’s announcement of closure of all mining operation in Bellary, the supply from Karnataka will come to a standstill.
“Queries have been increasing day by day. We are over booked for next few months. We expect prices might go to soon looking at demand.” said a mines owner based in Orissa.
According to Industry experts, “One can expect the iron ore prices to go up by Rs 300-500/MT in the first week of August”
Leave a Reply