Essel Mining – a major iron ore mine in Odisha has increased its offers for iron ore by INR 400/MT for high grade iron ore lumps w.e.f 21st Jan’20.
According to company sources, after the price hike, offers at Jilling mines for calibrated iron ore lumps (5-18mm crushed) for Fe 65% and Fe 63% stands at INR 6,425/MT and INR 5,750/MT (FoR, including Royalty, DMF & NMET) respectively. Also, the miner increased prices for 10-30 mm crushed lump ore to INR 6,025/MT for Fe 65% and INR 5,400/MT for Fe 63% (FoR, including Royalty, DMF & NMET).
It was also heard that the miner has increased fines prices by INR 150 w.e.f tomorrow.
Earlier towards beginning of Jan’20, the miner raised its offers for iron ore in lumps by INR 450/MT (for High grade lumps with Fe 65%). However, in fines price hike made was by INR 150/MT. OMC has increased the base price of lumps by INR 350/MT from all its mines for auction to be held on 24th Jan’20 against the base price of last e-auction conducted on 30th Nov’19.
Almost all the miners from Odisha increased iron ore fines and lumps offers in the last one month, fines by around INR 600-700/MT and in lumps around 1,000-1100/MT (Ex-mines). If market sources are to be believed, few major miners have already made aggressive bookings in last months as steel mills were actively restocking material ahead Mar’20 lease expiry. Also few mines are heard to have achieved EC limits for this fiscal. Hence, amid tight material availability miners are raising offers.
Odisha- India’s largest iron ore producing state recorded total iron ore dispatches at 9.32 MnT in Dec’19, up 11% on monthly basis as against 8.37 MnT in Nov’19. The figures exclude movement for export and dispatches of miners- SAIL & Tata Steel.
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