Local Freight in Odisha Reduce by INR 160-200/MT

After state govt. fixed ceiling prices of mineral transportation, local freight in Odisha has witnessed reduction by INR 160-200/MT.

Serajuddin Mines has started local transport freight as per the new tariff . However, other miners are yet to begin at tariff prescribed by the govt. Local freight from Serajuddin Mines to siding is approx INR 190/MT, which earlier was INR 450/MT. Similarly, transport freight from Koira to local Jharsuguda based sponge plants is currently prevailing at INR 550/MT, which earlier was INR 800-850/MT.

Will Odisha iron ore miners reduce prices for Sept’15 bookings?

A miner anonymously discussed that iron ore lump prices may reduce marginally around INR 100-200/MT due to high inventory. Whereas, fines price may remain unchanged over improved demand.

A sponge manufacturer shared, “Though sponge iron prices have picked up momentum recently and are trading at around a 1-month high, there are less chances to see its immediate impact on iron ore prices. With increased production of iron ore and dispatches being lesser in comparison to production, iron ore prices might remain stable in the near- term. Miners might be seen giving trade discounts to some buyers to attract sales in competitive market.”

Odisha’s monthly iron ore production rose by 8% M-o-M from 4.67 MnT in June’15 to 5.04 MnT in July’15. Iron ore dispatches from Odisha mines have fallen sharply by 25% M-o-M in July’15 to 3.57 MnT.

Odisha Iron Ore Production & Dispatches

Production & dispatches in MnT
Provisional data
*Dispatch figures of SAIL were not available therefore considered that SAIL’s entire production was dispatched 
Source: Govt. of Odisha