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India: NMDC cuts iron ore prices by INR 300/t ($4)

India’s largest merchant iron ore mining company, NMDC, has decreased list prices of iron ore today, SteelMint learnt from reliable sources. The company has cut...

Fines/Lumps
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15 Aug 2023, 07:55 IST
India: NMDC cuts iron ore prices by INR 300/t ($4)

India's largest merchant iron ore mining company, NMDC, has decreased list prices of iron ore today, SteelMint learnt from reliable sources. The company has cut prices of DR-CLO and fines by INR 300/tonne (t), effective from 15 Aug, 2023.

The miner has fixed prices of DR CLO (10-40mm, Fe67%) at INR 5,970/t and those of iron ore fines (-10mm, Fe64%) at INR 3,910/t (on FoR basis from Bacheli complex). Prices include royalty, DMF and NMET charges.

Factors impacting NMDC's prices:

Odisha iron ore fines prices fall m-o-m: SteelMint's Odisha iron ore fines (Fe62%) index fell sharply m-o-m by INR 780/t in July and was recorded at a monthly average of INR 4,570/t ex-mines. OMC conducted an auction for 2.152 million tonnes (mnt) of iron ore fines (Fe54-62%) and 859,000 t of lumps (5-40mm, Fe 58-62%) on 20 July. The miner had reduced the base price for fines by up to INR 750/t and that of lumps by INR 1,400-1,800/t compared to the previous auction, which impacted iron ore offers in Odisha.

Global iron ore prices fall amid Chinese steel production cut news: Iron ore Fe62% fines spot prices in China fell from their monthly average at $112/t CFR in July to $106/t, CFR in August (till 11 August), m-o-m on news of steel production cuts. Sluggish finished steel sales continued to weigh on iron ore procurement sentiments of mills.

Arrival of iron ore import cargoes to India: SteelMint has heard that Australian miners have started supplying low- to medium-grade iron ore fines (Fe57%-60.5%) to western India-based mills. Preference for fines instead of concentrates can be traced to the fact that mills are most likely increasing the sinter burden in their blast furnaces instead of pellets, SteelMint learn from market sources. This is because it is difficult to ship and transport iron ore concentrates over long distances in the rainy season. Iron ore imports were recorded at 0.67 mnt in Jun'23 and 0.23 mnt in Jul'23, as per data maintained with SteelMint.

Sponge iron prices recover after falling in July: Sponge iron (PDRI) prices in India declined in July. Prices fell on lack of buying enquiries in the spot market. As a result, suppliers in various regions of the country reduced their offers. The pellet-based P-DRI, ex-Raipur, dropped 5% to INR 26,530/t in July 2023, compared to INR 27,800/t in June. However, prices have recovered in August, amidst higher raw material costs to INR 28,550/t exw.

15 Aug 2023, 07:55 IST

 

 

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