Odisha’s major merchant miner- Essel Mining and Industry has reduced iron ore lump prices from its Jilling mines w.e.f 18-11-2018. Miner has announced a price cut to INR 6,725/MT (Fe 65% lumps) but Fines prices have remained unchanged.
Other miners are also looking for price reduction and they may also revise soon.
After successive price rise of INR 600-700/MT in August and again another hike of INR 500/MT in 1st week of September, Odisha based merchant miners were facing narrowed buying interest following which they have been giving quantity discounts to stimulate the buying interest.
Domestic pellet offers under pressure amid declining export offers –
Decreasing domestics pellet prices and export offers plunge in limited Chinese buying interest led the Odisha merchant iron ore prices soften. Durgapur (eastern India) pellet prices dropped 3 months low to INR 7,100-7,300/MT last week.
On the other side, Indian pellet export prices have come down sharply to USD 120-122/MT, CFR China down by USD 20/MT M-o-M.
Fall in Sponge iron prices in eastern India
Sponge iron (78 FeM) price assessment is around INR 22,000/MT in Durgapur against INR 22,400/MT a week ago. Amid limited trade inquiries and decline in finish steel market, prices have come under pressure.
Essel Mining Prices at Jilling Mines-:
| Material Type (Size mm) | Grade (Fe %) | Prices in INR/MT |
| 5-18 mm | Fe 65% | 6,725 |
| Fines | Fe 63 | 3,595 |
Prices mentioned are ex-mines, inclusive of Royalty, DMF & NMET, GST extra
Source: SteelMint Research
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