Sources reported that two Odisha major miners namely KJS Ahluwalia & Kaypee Enterprises have cut iron ore prices. However, company officials have not yet confirmed the offers. Sources also stated that official announcement may happen on 7 Sept’15.
Recently, two major miners namely, Rungta Mines and Essel Mining have already cut their prices on grounds of increased inventories. An official from a mining company shared that they are facing immense pressure from the govt. to utilize their EC limit and reduce prices in order to improve dispatches.
Prices of 5-18 mm (Fe 63%) offered by Kaypee Enterprises has declined to INR 3,000/MT (ex-mines) from previous price of INR 3,300/MT (ex-mines). Similarly, prices for 10-30 mm (Fe 62%) is INR 2,550/MT (ex-mines) and fines (Fe 63%) is at INR 1,550/MT (ex-mines). KJS Ahluwalia was also heard to reduce its iron ore offers by around INR 200/MT. Official confirmation for the same is still awaited. Offer for 5-18 mm of KJS Ahluwalia is expected to be around INR 3,250/MT (ex-mines), which was earlier at INR 3,450/MT (ex-mines).
Odisha Iron Ore Prices as on 05 Sept’15
| Miner | Size (mm) | Grade (Fe %) | Prices in INR/MT |
| Rungta MInes* | 5-18 (Cr) | 62 | 3,500 |
| 10-30 (Cr) | 62 | 3,200 | |
| Fines | 62 | 1,750 | |
| Essel Mining | 5-18 mm | 62 | 3,050 |
| 10-30 mm | 61 | 2,150 | |
| 30-80 mm | 61 | 1,900 | |
| Fines | 63 | 1,475 | |
| Serajuddin Mines | 5-18 mm | 63 | 3,250 |
| Fines | 63 | 1,500 | |
| Indrani Patnaik | 5-18 mm | 63 | 3,000 |
| 10-30 mm | 63 | 2,600 | |
| Fines | 62 | 1,400 |
Ex-mines prices
*prices as per loaded to wagons
Source: SteelMint Research
After state govt. fixed ceiling prices of mineral transportation, local freight in Odisha has witnessed reduction by INR 150-200/MT which was earlier at INR 400-450/MT.
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