SteelMint has learnt from its market sources that Odisha’s second largest merchant miner- Serajuddin mine has cut its iron ore lump prices by INR 500/MT w.e.f 31st Dec’18. As per sources, the miner has cut prices of 5-18mm (Fe 63%) from INR 4,300/MT to INR 3,800/MT (ex-mines, including Royalty, DMF & NMET). However, the prices for fines remain stable and is assessed at around INR 1,800/MT (ex-mines, including Royalty, DMF & NMET) for bulk bookings.
Prior to this the miner had cut prices by INR 400/MT and fines prices by INR 300/MT w.e.f 20 Dec’18. Before this price cut announced by the miner was of INR 300-400 per tonne on 28 Nov’18. So this is 3rd price cut made by the miner in a month’s time.
As per data maintained with SteelMint, Serajuddin iron ore production increased significantly by 84% to 0.79 MnT as against 0.43 MnT in Oct’18. There has been an increase in monthly production of Serajuddin mines as it has started operations at another pit which was closed for quite some time owing to technical issue.
Another miner, Essel Mining and Industries have also announced fourth price cut within a month’s time on 28 Dec’18.The miner had reduced iron ore prices by INR 350/MT in lump and fines by INR 200-300/MT. Prior to this the miner reduced lump prices by INR 400/MT and fines by INR 300/MT on 17th Dec’18.
Domestic Iron ore prices have dropped upto 34% in last 2 months on supply pressure. Fines prices have come down by 34% while lump prices have come down by 25%. Key merchant miners in Odisha are looking at scaling up their iron ore production in order to utilize their remaining Environmental Clearance (EC) approved for the financial year 2019 (Apr 2018 – Mar 2019)
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