Odisha’s major merchant miner – Essel Mining and Industries have reduced iron ore prices further by INR 500/MT in lump and INR 400/MT in fines w.e.f today (27 Nov’18).
This is the second time they have reduced iron ore prices. Last week they had reduced prices only in lumps and kept fines unchanged.
SteelMint learned that miners’ current trade price for Fe 63% fines from its Jilling mines is around INR 3,195/MT and for 5-18 mm (Fe 65%) around INR 6,225/MT (FOR prices, including Royalty, DMF & NMET).
Price cut by other major miners – KJS Ahluwalia also reduced iron ore prices and is offering Fe 63% fines at INR 2,500/MT and 5-18 lumps at INR 5,100/MT (Ex-mines prices including Royalty, DMF & NMET).
Odisha based merchant miners were facing narrowed buying interest following which they are giving quantity discounts to stimulate the buying interest. Last week, Serajuddin had also announced a price cut.
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.
Eastern India Sponge iron prices close to 2-month low -: Sponge iron (78 FeM) price assessment is around INR 21,800/MT in Durgapur. These price levels are similar to those seen at the beginning of Oct’18. Amid limited trade inquiries, the decline in the finish and semi-finish steel prices led the market comes under extreme pressure.
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 and expected to decrease further in a few days this week.
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