NMDC made no alteration in its February iron ore prices. Whereas, streets expectation was that lumps could be same as it is already at high levels and there might be some addition to fines.
A senior NMDC official told SteelMint, when asked about reasons supporting prices to survive at similar levels, “I don't really understand as to why market was hopeful of any hike in February iron ore prices.
Only expensive material in international market cannot push us to offer the same at high prices to domestic takers.
Our Board considers a number of factors such as demand scenario, order position, stock position, prices in the state of Odisha and many more, before considering the monthly revision.
Most importantly, miners in Odisha are selling at Rs 2,000/MT (including royalty).
Why would any steelmaker purchase iron ore fines of Fe% less than 63 above Rs 2,610/MT (excluding royalty and taxes) from NMDC and not look at Odisha as a better option”.
In the last few months, JSW and Essar have been the major buyers of iron ore from Odisha. Iron ore production in Odisha is around 50 to 55 million tons per annum (mtpa).
Other sources are of the view, “At current price levels, NMDC has not been able to make sales in huge quantities which ultimately resulted in a decision to hold offers for February also”.
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