SteelMint’s weekly Odisha iron ore fines (Fe 62%) index has risen by INR 500/t to INR 3,900/t ex-mines (including royalty, DMF and NMET). Majority of Odisha-based miners have raised their offers post-roll back of export duties.
Rationale:
- T1- One deal was reported for this week from Odisha trade therefore taken into consideration for the index calculation and given 50% weightage.
- T2- SteelMint received nine (09) offers and indicative prices under T2 trade deals in this publishing window out of which six (06) were taken into consideration and given 50% weightage. To check SteelMint’s iron ore assessment, pricing methodology, and specification documents Click here
Reasons behind hike:
- Low grade exports resume – SteelMint’s index for India’s low-grade iron ore fines (Fe 57%) exports have improved following the export duty withdrawal by the Indian government last week. The index stood at $53/t FOB east coast on 24 November, 2022. The market heard three-four deals getting concluded by Odisha-based miners and traders.
- Domestic pellet offers up post export duty withdrawal – SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,750/tonne (t) DAP, increasing sharply by INR 1,150/t compared to last week.
- Pellet exports resume after withdrawal of export duty – India’s pellet export trade activities have improved with couple of deals reported following the export duty withdrawal by the Indian government last week. SteelMint’s India pellet (Fe 63%, 3% Al) export index, FOB east coast, stood at $101/t on 23 Nov’22.
NMDC to auction over 350,000 t iron ore from Chhattisgarh: NMDC has scheduled two iron ore auctions from Chhattisgarh. The first auction is for 222,600 t of Fe 64%-67% (indicative) grade material from its Bacheli mines, while the second auction of 134,400 t of Fe 64-65.5% (indicative) grade ore is from Kirandul mines. Both auctions are scheduled for 29 Nov’22 and the material will be delivered FOR (by rail) ex-mine.
Over 350,000 t of iron ore booked at NMDC’s Karnataka auction: NMDC conducted an auction for 353,000 t of iron ore from its Kumaraswamy mines in Karnataka on 23 Nov’22.
- 85,000 t of lumps (10-40mm, Fe60.01-65.24%) were booked at INR 2,940/t.
- 268,000 t of fines (Fe58.19-64.21%) were booked at base price of INR 1,668-2,075/t.
- All prices exclude royalty, DMF, and NMET charges.
Chandrapur-based miner hike iron ore offers – A Chandrapur, Maharashtra-based iron ore miner has offered iron ore lumps (5-18mm, Fe 63%) at INR 7,700-7,800/t FOR Raipur and fines (Fe 63%) at around INR 4,200/t FOR Ballarshah. Lumps and fines ore offers have increased by INR 500/t.
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