Despite rising iron ore prices in global market, Odisha based private iron ore miners might consider price cut in the month of January due to Odisha government's order on sale of 50% or more iron ore (lumps and fines) production to standalone industries based in the state by merchant miners.
Sources highlight that as per quantity fixed by IBM (Indian Bureau of Mines) for each miner per annum ,unsold quantity can not be carried forward to next year. So miners would like to clear off with their inventories even at low levels.
“Chances are high that private miners might cut iron ore prices on 2 factors, one is 50:50 condition for supply of iron ore and second is ore produced but unsold this fiscal year.” said a senior official at one of the mines based in Odisha.
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