Iron ore miners based in the state of Odisha have pulled down domestic Iron ore lumps prices for mid June.
Hence, Sponge iron manufacturers cheer on falling Iron ore prices and are looking forward to raise their production capacities soon.
Prices of Sized Iron ore 5-18 mm with Fe 63 and 65 of various mines fall as mentioned below:
Rungta mines = Rs 300-400/MT
Essel mining = Rs 300-400/MT
Serajuddin & Co. = Rs 200/MT
Indrani Patnaik = Rs 400/MT
Sponge iron producers told SteelMint, “There is some relief for us as we can procure cheaper Iron ore now.
We had been waiting for some correction in raw material prices.
It was hurting our cost of operations and it was being difficult to absorb the loss.
We had to keep the ball rolling and therefore, mills were running at minimum capacities to maintain operations.
Some of the plants that closed down earlier hope to open up anytime soon.
Surplus stock of Iron ore with miners would not be an issue and stocks would be cleared in large, before monsoon arrives as we are ready to increase the quantity of purchase.
The current production capacity of our units, which is at 40-50% will move up to about 70% soon.
Pellet prices have also come down sharply in Odisha with increased availability.
We hope Sponge iron prices to either sustain or slightly move up to support us further and that they don't meet with any correction”.
NMDC's Iron ore prices are under pressure due to cheaper lron ore being offered from Odisha.
The state owned miner is to take a decision about its July Iron ore prices on the 3rd.
Chhattisgarh based Sponge iron makers said, “5-18 mm Iron ore landed cost in Chhattisgarh from Odisha and NMDC stands at a gap of around Rs 1,000/MT now.
Hence, we are preferring to take the raw material from Odisha”.
Although, there has been no impact on sales from the beginning of June, NMDC's Iron ore production as well as dispatches from Bailadila mines in the state of Chhattisgarh has been hampered this month by more than 15% due to heavy rainfall in June.
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