SteelMint’s weekly index for Odisha iron ore fines (Fe 62%) has moved up by INR 400/t to INR 7,100/t (ex-mines, including Royalty, DMF & NMET) following hike in offers by miners like Serajuddin, Sarda etc. However, a couple of leading merchant miners in Odisha are not offering material at previous offers and are expected to raise offers shortly, sources reported to SteelMint. Tighter availability of higher grade ore (Fe 62 & 63%) has continued to keep prices on an upside.
An Odisha based miner is heard to have booked around 200,000-300,000 t fines (Fe 63%) at INR 6,700/t (including Royalty, DMF and NMET) this week. In another reported trade heard, another Odisha based miner has booked fines (Fe 63%) grade at INR 7,400/t (including Royalty, DMF and NMET) this week. Trades were not considered for price calculation as they were not confirmed either by seller or miner till the time of publishing this article.
Rationale:
SteelMint has also received eight (08) offers, indicative prices under T2 trade in this publishing window and all were taken into consideration and given 100% weightage. To see SteelMint’s iron ore assessments, pricing methodology and specification documents, Click here.
Odisha iron ore prices:
NMDC announced 2nd iron ore price hike in Apr’21
India’s largest merchant and govt-owned iron ore miner, NMDC has announced a second price hike for Apr’21 , SteelMint learned from credible sources. On 14th Apr’21, the price of DR CLO (Fe 67%) has been increased by INR 1,280/t, Baila lump by INR 1,100/t and that of fines by INR 500/t. The recently announced changes in MMDR Amendment Act, 2021 for charging additional amount on grant/extension of mining leases granted after 2015, has resulted in iron ore price hike.
FOR prices, Royalty, DMF, NMET extra
Source : SteelMint Research
Entire quantity booked in recent NMDC’s Kumarswamy e-auction:
NMDC recently conducted an iron ore e-auction from its Kumarswamy mines on 16th Apr’21. Entire quantity offered of 80,000 t iron ore was booked. Arjas Steel Private Limited bought 24,000 t iron ore in the auction followed by JSW Steel Limited at 20,000 t. NMDC has increased the base price for e auction yesterday (16th Apr) from Kumarswamy mines. Base price for fines has moved up by around INR 700/t and that for lumps picked up by about INR 800/t. The current floor price for fines (Fe 62.2%) stands at INR 4,411/t and that of lump (Fe 64.9%) is at INR 6,911 (basic, exclusive of Royalty, DMF & NMET).
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