Rungta Mines, one of the largest merchant miners of Iron ore with about 12 MnT pa capacity and mining operations in the state of Odisha and Jharkhand, has kept Iron ore prices unchanged for the rest of December.

Prices are usually revised fornightly by the company. In the starting of this month Rungta and the other major miner Company Essel has already raised its prices by INR200/MT looking at rising demand and short supply of ore in the market.

[su_pullquote]Rungta Mines Current Iron ore lumps (Prices in INR/ WMT)

5-18 mm & Fe 65: 7,100
5-18 mm & Fe 63: 6,800
10-30 mm & Fe 63: 6,270
10-30 mm & Fe 65: 6,450

Fines & Fe 63: 2,650
(Prices loaded to wagons at major sidings in Barbil, Odisha; Including royalty) [/su_pullquote]

Other private miners likely to follow

Serajuddin, Essel and Indrani Patnaik mines also continues to offer same prices for the month. The prices are expected to be same in near future, because of low production. Serajuddin has already mined to the limit, it being was allowed to.

Sources mentioned, “ The prices are expected to remain same in the near future, as all miners there are suffering with the shortage in raw material.”

Hence, this has affected their production to a greater extent, and they are bound to produce upto  a certain limit.
The reason for shortage of raw material detected were some notification issued regarding the quantities supplied through rails.

Other mid-sized miners are also likely to stick to their previous offers. Sources say that short supply is either due to some of mid sized miners evacuating their permitted limit or some remains non operational due to inappropriate environmental clearances.

On speaking to Sponge manufacturers, they mentioned scope of Iron ore prices going up in coming months is very limited as Sponge Iron and Pig Iron prices have been range bound. Any further increase in prices will force  manufacturers to cut down their productions.

Currently Sponge Iron prices are hovering in the range of INR 18,200-20,200/MT on ex-works basis.