Iron ore prices in India’s largest iron ore producing state remains under pressure. Lump prices have come down by INR 250/MT and fines by INR 75/MT.
India’s largest private merchant iron ore producer – Rungta Mines has today announced a price cut owing to falling domestic sponge offers in May’17. It is to be noted that monthly average C-DRI prices in Durgapur declined by about 11% M-o-M from INR 17,350/MT in Apr’17 to INR 15,500/MT in May’17.
Apart from domestic offers, global iron ore prices have dipped in May’17. Fe 62% fines index has come down by USD 10/MT M-o-M to USD 60.9/MT, CFR China in May’17.
Another Odisha based major merchant miner – Essel Mining has also recently reduced prices by INR 75-250/MT. As per market sources report to SteelMint prices have been slashed in order to pick up orders over less dispatches.
| Mines Name | Size | Grade (Fe %) | Prices in INR/MT | Change |
| Rungta Mines* | 5-18 | 62 | 3,750 | -250 |
| 10-30 | 62 | 3,400 | -250 | |
| Fines | 63 | 1,650 | -75 | |
| Essel Mining | 5-18 | 62 | 3,200 | -250 |
| 10-30 (Sc) | 61 | 3,100 | -250 | |
| Fines | 63 | 1,200 | -75 |
Ex-mines prices in INR/MT & incld Royalty, DMF & NMET
*loaded to wagons
Source: SteelMint Research
Iron ore output of Rungta Mines soared 30% Y-o-Y to 22.87 MnT in FY17.
It is expected that other major merchant miners in Odisha may also follow the suit and cut iron ore prices shortly.
Yesterday’s OMC e-auction fetched weak response as out of 508,900 MT iron ore offered, only 200,000 MT was booked. The miner had hiked Koira mines base prices up to 11% for the e-auction.
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