Iron ore fines prices in Odisha remained largely stable this week. SteelMint’s weekly Odisha iron ore fines index (Fe 62%) has fallen marginally by INR 50/tonne (t), w-o-w, to INR 5,050/t ex-mines.
Limited deals for high-grade fines were heard this week. A few deals were reported to SteelMint for around 30,000-35,000 t of fines (Fe 60/61%) at INR 4,000/t (ex-mines, inlcuding royalty, DMF and NMET) but these were not considered for the index calculation due to lower grade.
Odisha-based merchant iron ore miner, Rungta Sons Pvt Ltd., has slashed iron ore fines (Fe 62%) prices by INR 800/t and lump prices by around INR 2,000/t against last offers floated towards end-Nov’21, sources informed SteelMint.
However, a few market participants are doubtful whether the recent hike in pellet offers will result in a hike in offers by the merchant miners.
Rationale:
- No trades were considered as T1 trade hence given 0% weightage in the index calculation for Fe 62% fines.
- SteelMint received eleven (11) offers and indicative prices under T2 trades in this publishing window. Eight (08) were taken into consideration and given 100% weightage. To check SteelMint’s iron ore assessment, pricing methodology, and specification documents Click here
Odisha iron ore prices:
NMDC to re-auction nearly 300,000 t of iron ore from Chhattisgarh
State-owned miner National Mineral Development Corporation (NMDC) has rescheduled two iron ore auctions. The first auction is for 222,600 t of Fe 64%-67% grade ore from the company’s Bacheli mines, while the second is for 75,600 t of Fe 64%-65.5% grade material from the Kirandul mines – both in Chhattisgarh. The auctions are scheduled for 16 Dec’21. NMDC’s previous auction held on 29 Nov failed to elicit any response from buyers.
NMDC cuts base price for Karnataka e-auction
NMDC has slashed iron ore prices by INR 400/t for fines and INR 1,200-1,300/t for lumps from 8 Dec’21 for auction from its Karnataka mines. The current floor price of fines (Fe 62%) stands at INR 3,427/t, while Fe 63% fines is priced at INR 3,599/t (basic, excluding royalty, DMF and NMET). The base price of lump (Fe 64%) is at INR 4,056/t (basic, minus royalty, DMF and NMET)
NMDC sells sizeable volumes at auctions from its Karnataka mines
- The entire material on offer was booked at NMDC’s 540,000 t iron ore auction from the Donimalai mines held on 8 Dec’21. JSW Steel Ltd. was the largest buyer at 320,000 t followed by BMM Ispat Ltd. at 120,000 t.
- At NMDC’s auction from Kumaraswamy mines on 7 Dec’21, 292,000 t of iron ore was booked out of 301,000 t offered. JSW Steel remained the largest buyer at 204,000 t followed by Vanya Steels Pvt. Ltd. at 28,000 t.
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