Few major merchant miners in Odisha increase lump prices further by INR 200-250/MT.
Odisha based merchant miners had increased iron ore lump prices by INR 250/MT and fines prices up to INR 100/MT in the mid of this month.
Few major merchant miners namely Rungta Mines, KJS Ahluwalia and Kaypee Enterprises have again raised lump prices by INR 200-250/MT recently. Thus, it is the second time that the miners have raised lump prices in Sep’16.
Odisha iron ore prices w.e.f 24 Sep’16
|
Miner |
Size (mm) | Grade (Fe %) | Prices in INR/MT |
W-o-W |
| Rungta Mines* | 5-18 | 62 | 3,050 | +250 |
| 10-30 | 62 | 2,900 | +250 | |
| Fines | 63 | 1,650 | = | |
| KJS Ahluwalia | 5-18 | 63 | 2,400 | +200 |
| 10-30 | 61 | 2,300 | +200 | |
| Fines | 63 | 1,150 | = | |
| Kaypee Enterprises | 5-18 | 63 | 2,350 | +200 |
| 10-30 | 61 | 2,200 | +200 | |
| Fines | 63 | 1,160 | = |
Ex-mines prices & inclusive of Royalty, DMF and NMET
*loaded to wagons
Source: SteelMint Research
Which factors have lead to increase in lump prices ?
1. Prices rise in sponge iron – Sponge iron prices observed hike of up to INR 500/MT in the last week (i.e. Week 39). Improved seasonal demand and high raw material prices led to increase in sponge iron prices.
2. Marginal supply tightness in lump – Few market sources shared that there is a marginal tightness in lump production. As per Odisha govt. data maintained with SteelMint, iron ore production in Odisha remained stable M-o-M and was recorded at 5.29 MnT in Aug’16. However, the production of merchant miners fell from 3.77 MnT in Jul’16 to 3.73 MnT in Aug’16.
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