In the last month or so, Indian iron ore and pellet prices have seen a phenomenal rise. The country’s largest iron ore miner – NMDC has announced a sharp price hike of 30% in fines and 10% in lumps for the month of May. Similar trends are being observed in Odisha, where miners have increased prices by up to 25% in the last one month.
These price hikes are being supported by a corresponding increase in appetite from steel mills owing to high margins and strong demand for pellets from China. Notably Indian pellet export prices have also hit an all time high of about $245/t FOB levels, which is equivalent to INR 15,5000-16,000/t on ex-plant basis.
Indian domestic steel prices are currently trading at a discount of around INR 4,500/t ($60) against the global market due to lockdowns. SteelMint’s benchmark prices for 2.5mm thick hot-rolled coils (HRC) stand at INR 66,000-67,000/t (exy-Mumbai), excluding GST @18%.
In other news/trades
- SteelMint’s benchmark sponge iron prices surged to INR 32,400-500/t exw Raipur, buyers turned cautious while booking at such high offers.
- Indian sponge iron export prices hit an all-time high at $470-475/t CFR Chittagong in recent deals of around 12,000 t.
- SteelMint’s billet index increased by INR 300/t to INR 44,100/t exw Raipur on strengthening sponge iron prices.
- Orissa Mining Corp is to auction 7,000 t unsold chrome ore on 17 May and has lowered the base price by 7.5% in view of falling ferro chrome prices.
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