In Apr’16, few Odisha based miners had cut iron ore prices while others chose to roll over. Market participants shared that miners are facing pressure more in fines as they are having considerable stock with them. Also sluggish demand has kept east India sponge iron manufacturers under pressure with limited buying interest.
Trade-wise:
- Fines (Fe 62%) prices in Odisha are at INR 1,250/MT (ex-mines) and for Fe 63% they are in the range of INR 1,150-1,300/MT (ex-mines). Offers for loaded to wagons for Fe 63% fines are at INR 1,550/MT
- Odisha prices for 5-18 mm (Fe 63%) are in the range of INR 2,150-2,400/MT (ex-mines). The variation in prices is due to logistics expenses incured for carrying material from plant to railway siding
- Prices of 10-30 mm (Fe 63/62%) are at INR 2,050-2,150/MT (ex-mines). However market sources shared that some Odisha based miners are seen offering 10-30 mm (Fe 63%) at INR 1,750/MT (ex-mines) owing to considerable stock lying with them. Koira miners were heard selling 10-30 mm (Fe 61%) at INR 1,500/MT
- Iron ore prices in latest OMC e-auction remained as follows-Koira 10-40 mm (Fe 62%) was base priced at INR 1,750/MT and for its Daitari mines it was base priced at INR 1,800/MT
Prices mentioned above are inclusive of Royalty, DMF & NMET
Fines prices in Odisha may further come under pressure-
On 8th Apr’16, Odisha High Court ordered Jindal Steel & Power (JSPL) to lift its iron ore stocks of nearly 10 MnT (majorly fines) lying at Sarda mines. JSPL is a major pellet maker and had to source iron ore from Odisha merchant miners (primarily from Kaypee Enterprises, Rungta Mines & Serajuddin) to fulfill its requirement.
The steel maker has not yet started lifting iron ore stocks but once it starts lifting the stocks (probably by mid of May’16), fines prices in Odisha may further come under pressure. It is anticipated that fines prices may decline by INR 100-150/MT in the coming month.
Leave a Reply