NMDC Increases Iron Ore Fines Prices by INR 100/MT; Lump Unchanged

Sharp hike of USD 16/MT M-o-M in global iron ore fines index pushes domestic iron ore prices.

India’s largest iron ore producer – National Mineral Development Corporation has today (i.e. 29 Nov’16) revised iron ore prices. In its latest price revision of today, NMDC has raised fines prices by INR 100/MT, while lump prices continue to remain unchanged.

Prior to this, the miner had rolled over the prices w.e.f 03 Nov’16. However today the miner has raised fines prices.

NMDC iron ore price hike can be attributed to following reasons:

Global iron ore fines index hits USD 80/MT, CFR mark – Iron ore fines (Fe 62%) index increased sharply by USD 16/MT M-o-M and yesterday it was assesed at USD 80.2/MT, CFR China. Backed by stronger sentiments in Chinese domestic steel market and expectations of stronger finished steel demand in 2017 pushed up iron ore prices.

NMDC’s iron ore dispatches in Nov’16 – As per railway movement data compiled by SteelMint, JSW Steel, Dolvi has procured 39 rakes in Nov’16 (till 28 Nov’16). Last month it had sourced 42 rakes. C.G. based sponge units iron ore sourcing has also remained stable on monthly premises as they have procured 60 rakes till 28 Nov’16 against 65 rakes in Oct’16.

Increase in India’s domestic billet offers – Domestic billet offers in India have witnessed a northwards movement and have moved up to INR 1,800/MT M-o-M except southern India where demand has not yet picked up.

NMDC iron ore prices w.e.f 29 Nov’16

F.O.R prices in INR/MT 
Royalty, DMF, NMET & other taxes extra
Source: SteelMint Research