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India: NMDC hikes iron ore prices by up to INR 300/t ($4)

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Fines/Lumps

BigMint Bureau

852 Reads

26 Apr 2024, 23:46 IST

India: NMDC hikes iron ore prices by up to INR 300/t ($4)

Bids increase in OMC's iron ore auction

Global ore recovers on Chinese restocking

India's largest merchant iron ore mining company, NMDC, increased list prices of iron ore fines and calibrated lump ore today by INR 200/t ($2/t) and INR 300/t ($4/t) respectively, BigMint learnt from reliable sources. The company's effective prices are effective from 27 April 2024.

The miner has fixed prices of DR CLO (10-40mm, Fe67%) at INR 7,270/t ($87/t) and of iron ore fines (-10mm, Fe64%) at INR 5,260/t ($63/t) on FoR basis from its Bacheli complex. Prices include royalty, DMF and NMET charges.

Factors behind hike in prices

Bids rise in OMC's iron ore auction - OMC auctioned 3 mnt of iron ore from Odisha on 19 April. The steelmakers participated actively in the auction and the entire quantity of fines (1.828 mnt, Fe 54-65%) was booked at INR 2,850-5,600/t ($34-67/t). While 1.163 mnt (99% of offered quantity, Fe 58-64%) was booked at INR 5,000-7,950/t ($60-95/t). Bids for fines and lumps increased by INR 300-900/t ($4-11/t) and INR 200-1,050/t ($2-13/t) for the majority lots as against last month's bids.

Domestic pellet prices rise - BigMint's bi-weekly domestic pellet (Fe 63%) index stood at INR 9,850/t ($118/t) DAP Raipur on 26 April 2024. Prices rose by INR 700/t ($8/t) compared to early April. Pellet producers in the Raipur region hiked their pellet offers amid the rise in sponge and finished steel prices in the last few days this week. BigMint's India pellet (Fe 63%, 3% Al) export index (FOB east coast) increased by $2/t w-o-w to $105/t on 24 April, 2024 on improved trades.

Hike in global iron ore prices - The spot price for Fe 62% iron ore fines was recorded at $118.90/t in China on 25 April. Prices have risen by around $20/t since the first week of April amid regained market optimism due to strong demand fundamentals and an uptick in macro-economic factors. Steel mills showed restocking demand recovery for iron ore as production resumed after margin improvement and downstream demand.

Steel prices in India rise in April - Several prominent producers of hot-rolled (HR) and cold-rolled (CR) coils in India have declared an interim price increase of INR 500/t ($600/t) for late April 2024 sales. This move comes against a backdrop of fluctuating market trends and mixed sentiments within the industry. Trade-level blast furnace (BF) rebar prices continued to rise as mills' increased list prices by INR 500-1,500/t ($6-18/t) during the week, sources informed BigMint.