India: NMDC cuts iron ore prices by upto 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 by INR 300/t and fines by INR 100/t, effective from 29 Apr'23.

NMDC fixed prices for DR CLO (Fe 67%, 10-40mm) at INR 5,520/t and iron fines (64% - 10mm) at INR 4,010/t (FoR prices from Bacheli complex, excluding royalty, DMF and NMET) with effect from today.

Factors behind the price cut-

• Odisha iron ore fines prices stable m-o-m, likely to drop: SteelMint's Odisha iron ore fines (Fe 62%) index remained stable m-o-m in April at INR 5,700/t ex-mines as miners held back offers post-OMC auction, which was conducted on 18 April. As per sources, iron ore prices may fall in the coming days as trade and sentiments remain weak.
  
  
• Domestic pellet prices fall on limited trade: SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, fell around INR 450/t m-o-m amid falling sponge iron prices. As per sources, there is very little trade activity in the market, as the price gap between buyers and sellers still exists. However, buyers are waiting for a fall in iron ore offers as trade is happening only on a hand-to-mouth basis. Buyers are mostly on a wait-and-watch mode.

  
  
  

• Pellet export prices fall to multi-month low: Indian pellet suppliers are currently holding back offers for exports and so there are very few offers in the market. Export indications have hit a multi-month low, as per data. SteelMint's India pellet (Fe63%, 3% Al) export index FOB east coast was recorded at $100/t on 26 April. On monthly basis, prices fell by $10/t. Indian pellet export prices have witnessed a decline on the back declining global iron ore prices and falling steel margins in China.
  
  
• Global iron ore prices fall on weak steel demand: Monthly average prices of benchmark Fe 62% Australian iron ore fines moved down by around $9/t m-o-m. Currently, prices are assessed around $106/t CFR China. Due to high selling pressure on steel amid surplus availability, buyers are avoiding booking significant volumes of the raw material.
  
  
• Indian HRC prices fall m-o-m: Trade prices of hot-rolled coil (HRC) have been on a declining trajectory in April. Cautious buyers, pressure from imported HRC and softening global HRC prices have slowed down market activity, resulting in prices remaining stable. Moreover, market participants are now looking forward to list price announcements by mills for May sales.
  
  
• Sponge iron ore prices drop m-o-m: Sponge iron prices witnessed a significant drop this month due to low buying interest amid the continuous decline in spot demand for semi-finished steel products. SteelMint's monthly average price for sponge iron (PDRI) stood at INR 30,185/t exw Raipur, down INR 1,055/t m-o-m.