Two of the major miners have reduced iron ore offers this week; in-line others may correct their offers, most probably by next week.
Odisha based KJS Ahluwalia, one of the major merchant miner, has recently cut its iron lump prices by INR 200/MT but kept fines prices unchanged.
Prices are bearish on account of resumption of closed mines in Odisha under MMDR act, resulted by significant increase in supply. In addition, the declining sponge iron prices are creating price pressure on iron ore; forcing merchant miners to reduce their prices.
Previous month, the state government had approved recommendation to re-opening of closed mines under MMDR act and allowed operation of the non-captive mines till 2020.
Serajudin Mines Cuts Prices by INR 350/MT
Serajuddin Mines, another Odisha based major merchant miner had produced about 5.2 MnT of Iron ore in FY15 against 8.3 MnT in FY14. The miner has an EC limit of 15.15 MnT pa. Recently, it had cut iron lump prices by INR 350/MT, keeping fines prices unchanged. Current offers for 5-18 mm are at INR 3,550/MT ex-mines and fines at 1,500/MT ex-mines.
It has been assumed that other miners may reduce their offers most likely by next week.
Iron Ore Prices in Odisha
| Miner | Size | Grade (Fe %) | Prices in INR/MT | Change | |
| Ex-Mines | Loaded into wagons |
||||
| Rungta Mines | 5-18 mm | 63 | – | 5,150 | 0 |
| 10-30 mm | 63 | – | 4,500 | 0 | |
| Fines | 63 | – | 2,250 | 0 | |
| Fines | 60 | – | 1,800 | 0 | |
| Serajuddin Mines | 5-18 mm | 63 | 3,550 | 4,000 | –350 |
| Fines | 63 | 1,500 | 2,020 | 0 | |
| Indrani Patnaik | Fines | 63 | – | 1,850 | 0 |
| KJS Ahluwalia | 5-18 mm | 63 | 3,800 | 4,250 | -200 |
| 10-30 mm | 62 | 3,000 | 3,450 | -100 | |
| Fines | 63 | 1,700 | 2,150 | 0 | |
| Kaypee Enterprises | 5-18 mm | 63 | 3,600 | 3,950 | -200 |
| 10-30 mm | 62 | 3,000 | 3,350 | -200 | |
| Fines | 63 | 1,700 | 2,050 | 0 | |
| K N Ram | 5-18 mm | 63 | 3,800 | 4,150 | 0 |
| Fines | 63 | 1,600 | 1,950 | 0 | |
Prices including Royalty
Source: SteelMint
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