According to trade sources report to the SteelMint, Odisha’s based merchant iron ore miners are planning to cut iron ore prices early next week. Towards beginning of the week, iron ore miners were heard to have increased discounts over announced offers.
SteelMint learned from the sources that currently trade prices for Fe 63% fines are around INR 2,700-2,900/MT and for 5-18 mm (Fe 63%) around INR 5,500/MT (ex-mines, including Royalty, DMF & NMET). Prices mentioned are for regular quantity bookings while bulk buyers may attract further discount. A month back, trade reference prices were INR 3,000-3,100/MT for fines and INR 5,700/MT for 5-18mm lumps.
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. To enhance further buying, miners are heard to slash prices towards beginning of next week.
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 7,500-7,600/MT.
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 22,900/MT in Durgapur against INR 23,600/MT a week ago. Amid limited trade inquiries and decline in finish steel market, prices have come under pressure.
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