National Mineral Development Corporation (NMDC)- state controlled miner has cut iron ore prices by INR 90-220/MT for May’16. Fines prices have come down by INR 200/MT and lump prices have fallen by INR 100-220/MT.
In Apr’16, the miner had raised iron ore prices by INR 140-270/MT. Following the price hike NMDC iron ore sales have reduced considerably. On the other hand, few Odisha miners had cut prices in Apr’16 while others rolled over. Owing to this many Chhattisgarh based sponge iron units shifted to Odisha iron ore over decent availability and competitive offers.
NMDC Iron Ore Prices for May’16
|
Size |
Grade (Fe %) | Prices | Change | |
| (in INR/MT) |
(in %) |
|||
| 10-40 mm, DR CLO | 67 | 2,300 | -220 | -9% |
| Baila lump , 6-40 mm | 65 | 2,000 | -100 | -5% |
| ROM, 10-150 mm | 65 | 1,800 | -90 | -5% |
| Blue Dust/ Fines | 64 | 1,660 | -200 | -11% |
Prices w.e.f 04 May’16 in INR/MT excluding DMF@30% of royalty
Royalty@15% and other taxes extra
Source: SteelMint Research
NMDC iron ore sales to C.G. based units dropped considerably in Apr’16
Iron ore procurement by Chhattisgarh based plants almost halved in Apr’16. They procured 38 rakes of iron ore in Apr’16 compared to 75 rakes in Mar’16.
However sourcing form outside state based units remained mostly stable. JSW Steel, prominent buyer also increased its sourcing from Odisha and sourced 105 rakes of iron ore from Odisha compared to 41 rakes from NMDC (C.G.).
NMDC’s iron ore sales in Karnataka e-auctions dropped significantly in Apr’16. NMDC managed to sell only 1.03 MnT iron ore via e-auctions conducted in Apr’16 against 1.34 MnT in Mar’16.
NMDC exported 0.29 MnT iron ore in Apr’16
In 1st month of FY17, NMDC exported 0.29 MnT iron ore to South Korea and Japan from Vizag Port via six shipments.
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