Merchant miners in Odisha are seen offering quantity discounts to overcome the present difficulty arriving out from increased ore production and falling dispatches.
An Odisha based merchant miner shared that we have kept iron ore offers unchanged for small buyers but for our fixed buyers we are offering quantity discounts.
A market participant shared that an Odisha based merchant miner is seen offering 5-18 mm (Fe 63%) at INR 2,300/MT (loaded to wagons & inclusive of Royalty, DMF & NMET). Odisha iron ore miners are heard to offer fines (Fe 63%) at INR 1,100-1,200/MT (ex-mines & inclusive of Royalty, DMF & NMET).
As per a trade source based in eastern India, Odisha based AMTC mines has cut lump (5-18 mm) offers by INR 100/MT. 5-18 mm (Fe 62%) is being offered at INR 2,300/MT. Fines (Fe 63/62%) prices remain unchanged at INR 1,100/MT. (Prices indicated are ex-mines & inclusive of Royalty, DMF & NMET).
Odisha’s iron ore production hit 8.75 MnT in Apr’16. Out of which merchant miners produced 7.02 MnT. But they managed to dispatch only 5.2 MnT iron ore. Odisha government expects state’s iron ore production to touch 100 MnT in this fiscal which will further pressurize domestic iron ore prices.
Odisha miners may cut prices in 2nd half of Jun’16
In talk with SteelMint merchant miners in Odisha shared that amid weak demand from sponge iron manufacturers and falling prices of semi-finished steel products, there are chances that iron ore prices may come down in 2nd half of this month.
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