India’s largest iron ore miner – National Mineral Development Corporation (NMDC) which used to revise iron ore prices at the beginning of the month, has now been seen revising towards the mid of the month.
Last month, NMDC rolled over prices i.e. in line with Mar’18 prices but later in the month (18th April) decreased its iron ore prices by INR 100-110/MT for rest of the month deliveries. So far in May 2018 prices have remained unchanged.
As per market sources report to SteelMint, NMDC had an annual business plan meeting on 8th and 9th May 2018. It may be possible that in the annual meeting they have taken the decision to revise monthly iron ore prices in the mid of every month instead of doing in the beginning.
NMDC is closely tracking the Odisha’s iron ore prices for further revision in the company’s iron ore prices. They are very cautious for every movement in the market. Also, the miner is considering government’s monthly report before making a price announcement.
Essel mines have decreased its offers by INR100/MT in both lumps and fines of its mines (Koira and Jilling) at the beginning of this month. In a further development in Odisha RP Sao has resumed iron ore dispatches from its mines recently. The iron ore mine has an EC limit of around 5.7 MnT p.a.
SteelMint has also learned from the market participants that Odisha miners are giving discount around 300-400/MT on bulk purchases.
While looking at the scenario, an increase iron ore supply in the market may put iron ore prices under pressure.
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