NMDC has revised its iron ore prices and reduced iron ore lump and ROM prices. However fines prices continue to remain unchanged.
The miner has further reduced Baila lump prices by INR 300/MT, DR-CLO prices by INR 360/MT and ROM prices by INR 260/MT. The revised prices will be applicable from today (i.e. 26 Nov’15)
In the beginning of Nov’15, the miner had cut lump prices by INR 100-200/MT, ROM prices by INR 80/MT and surprisingly raised fines prices by INR 100/MT. The steel makers had reacted negatively over its increase in iron ore fines prices when prices in both global and domestic market are undergoing a downtrend.
NMDC Iron Ore Prices
|
Month |
10-150 mm | 10-40 mm, DR CLO | 6-40 mm | Blue Dust/Fines |
| (Fe 65%) | (Fe 67%) | (Fe 65%) |
(Fe 64%) |
|
| Nov’15** | 1,870 | 2,540 | 2,100 | 1,560 |
| Nov’15 | 2,130 | 2,900 | 2,400 | 1,560 |
| Oct’15 | 2,210 | 3,020 | 2,500 | 1,460 |
| Sept’15 | 2,510 | 3,440 | 2,850 | 1,660 |
| Aug’15 | 2,590 | 3,840 | 2,950 | 1,660 |
| July’15 | 2,590 | 3,840 | 2,950 | 1,660 |
| June’15 | 2,690 | 3,840 | 3,050 | 1,960 |
| May’15 | 2,690 | 3,840 | 3,050 | 1,960 |
| April’15* | 2,690 | 3,840 | 3,050 | 1,960 |
| April’15 | 2,860 | 4,040 | 3,250 | 2,460 |
Prices in INR/MT excluding royalty @ 15% and DMF@30% of royalty w.e.f 01 Oct’15
** applicable from 26 Nov’15
*prices effective from 18-30 Apr’15
Source: SteelMint Research
Reasons behind NMDC’s iron ore price reduction
1. Falling iron ore prices in Odisha: Merchant miners in Odisha have reduced iron ore prices. Since beginning of Oct’15 lump prices have fallen by upto INR 600/MT and fines prices have fallen by INR 300/MT
2. Reduced dispatches: NMDC loaded 357 rakes of iron ore from its CG mines in Oct’15. Out of this CG based plants procured 59 rakes. But in Nov’15 (till 25 Nov’15) NMDC has supplied only 155 rakes of iron ore from its Bailadila mines in C.G. Share of CG based plants was only 13 rakes.
Major buyers namely RINL and JSW Steel, Dolvi have reduced purchases drastically. JSW Steel, Dolvi has procured only 13 rakes and RINL has procured 126 rakes in Nov’15 (till 25 Nov’15). NMDC has exported 2 iron ore vessels of 70,000 MT & 77,000 MT to South Korea in Nov’15.
3. Falling global iron ore prices: Global iron ore prices have touched record lows making imported iron ore further cheaper. Offers of South African imported lump are around USD 54-55/MT, CFR Kandla for ready stock
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