NMDC has revised its Iron ore prices and reduced by INR 200-500/MT for rest of April (18-30 Apr’15) in order to compete with cheaper imports.
NMDC (National Mineral Development Corporation), India’s largest and state-owned Iron ore producer, has cut Iron ore fines prices by INR 500/MT and lump by INR 200/MT for rest of April. NMDC, which reviews prices on a monthly basis, has made a surprise cut to compete with cheaper imports.
NMDC Iron Ore Prices from Jan’15-Apr’15
|
Month |
10-150 mm (Fe 65%) | 10-40 mm, DR CLO (Fe 67%) | 6-40 mm (Fe 65%) |
Blue Dust/Fines (Fe 64%) |
| Apr’15* | 2,660 | 3,840 | 3,050 | 1,960 |
| Apr’15 | 2,860 | 4,040 | 3,250 | 2,460 |
| Mar’15 | 2,860 | 4,040 | 3,250 | 2,460 |
| Feb’15 | 3,300 | 4,540 | 3,750 | 2,760 |
| Jan’15 | 3,690 | 4,990 | 4,200 | 3,060 |
*Prices effective from 18-30 Apr’15
Royalty and other taxes extra
Source: SteelMint Research
Earlier, NMDC had kept its prices unchanged for Apr’15. The miner has set a target of 35 MnT Iron ore production for FY16. The sale, which would include the inventory, will be about 38 MnT during the financial year.
Cheaper Imports
Iron ore imports to India have recorded at an all time high of 15.1 MnT in FY15. SteelMint earlier reported that cheaper Iron ore lump offers from South Africa may force NMDC to review their prices for May deliveries. South African lump (64% Fe, 6-40mm) prices have fallen to USD 64-66/MT, CNF India amid declining Iron ore prices in the global market. Similarly, Iron fines prices have fallen to USD 55-57/MT, CIF India for Fe 64/63% (Iron ore imports to India attract a duty of 2.5%).
Current offers for South African imported lump (Fe 65%) are around USD 64-66/MT, CNF Krishnapatnam Port for May/June deliveries. South Africa, which has been a major source for Indian Iron ore imports, occupied 38% share in total Iron ore imports to India in FY15. Other major sources for imports were Brazil, Australia, Oman & Canada.
Indian steel manufacturing companies are still preferring imported Iron ore against domestic ore owing to its consistent availability and falling Iron ore prices in the global market, which plunged to 10-year low.
Iron ore prices remain unaltered in Odisha for April. Major merchant miners in Odisha have kept Iron ore prices unchanged as of now.
Iron Ore Prices for Apr’15
|
State |
Miner | Size | Grade | Price | W-o-W |
M-o-M |
| Odisha | Rungta | 5-18 mm | 63% | 5,550 | 0 | 0 |
| Odisha | Rungta | 10-30 mm | 63% | 4,900 | 0 | 0 |
| Odisha | Rungta | Fines | 63% | 2,400 | 0 | 0 |
| Odisha | Serajuddin | 5-18 mm | 63% | 4,850 | 0 | 0 |
| Odisha | Serajuddin | Fines | 63% | 2,250 | 0 | 0 |
Prices including royalty and on loaded to wagons basis
Source: SteelMint Research
Leave a Reply