India’s largest iron ore producer – National Mineral Development Corporation (NMDC, Chhattisgarh) has increased iron ore prices up to 13% for Dec’17 deliveries. The miner has raised lump prices by INR 300/MT, fines by INR 200/MT, DR-CLO by INR 360/MT and ROM by INR 280/MT.
Factors driving iron ore prices
1. Recent price hike by private merchant iron ore miners in Odisha. Rungta and KJS raised lumps prices by Rs 400/t ($6.2) and fines prices by Rs 200/t ($3.1)
2. Some big miners in Odisha have utilized their EC (environmental clearance) limit and can not produce till new EC is granted (i.e. from April 2018)
3. Indian sponge iron prices have increased sharply and nearing 3-years high
4.Imported scrap prices continue to rise on strong global demand. Shredded scrap offers have reached $340-345/t CFR India levels
5. Low availability of iron pellets in domestic market as manufacturers are booked till January shipment
6.NMDC’s (Chhattisgarh) recent auction fetched a premium of about Rs 580/t on iron ore lumps
NMDC (C.G.) iron ore prices
|
Size |
Grade (Fe %) |
Prices |
Change (in INR/MT) |
Change (in %) |
|
10-40 mm, DR CLO |
67 |
3,050 |
+360 |
+13% |
|
Baila lump , 6-40 mm |
65 |
2,600 |
+300 |
+13% |
|
ROM, 10-150 mm |
65 |
2,390 |
+280 |
+13% |
|
Blue Dust/Fines |
64 |
2,260 |
+200 |
+10% |
F.O.R prices in INR/MT w.e.f 30 Nov’17
Royalty, DMF, NMET and other taxes extra
Source: SteelMint Research
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