Tuesday, November 23,
Sources have confirmed that one of the major iron ore mines in Orissa is expected to reduce its prices by Rs 300-500/MT on an ex-mines basis due to reduced buying in iron ore over the past 1 month or more, and fall in sponge iron prices that have lead to lower conversions/margins for steel makers.
Other mines might follow suit and may also reduce their prices in the weeks to follow.
Reduced prices of iron ore- one of the major raw materials for steel could bring some relief to the steel makers and could help them in attaining better margins/conversions.
Such reduction may not have come as a surprise to many owing to recent developments at major mandis’ especially Chhattisgarh. Chhattisgarh Mini Steel Plant Association’s has proposed to go on a complete strike starting December 1 against high raw material cost and power charges.
Sponge iron and rolling mills across India are also running at low capacities resulting in low consumption of iron ore.
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