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India: NMDC hikes iron ore prices by up to INR 350/t ($4)

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Fines/Lumps

BigMint Bureau

526 Reads

28 May 2024, 10:03 IST

India: NMDC hikes iron ore prices by up to INR 350/t ($4)

India's largest merchant iron ore mining company, NMDC, increased list prices of iron ore calibrated lump ore and fines today by INR 250/t($3/t) and INR 350/t ($4/t)* respectively, BigMint learnt from reliable sources. The company's effective prices are effective from 28 May 2024.

The miner has fixed prices of DR CLO (10-40mm, Fe67%) at INR 7,520/t ($90/t) and of iron ore fines (-10mm, Fe64%) at INR 5,610/t ($67/t) on FoR basis from its Bacheli complex. Prices include royalty, DMF and NMET charges.

Factors behind hike in prices:

Hike in bids in OMC's auction - OMC conducted an auction for around 3 mnt on 21 May from Odisha. The entire quantity of 1.807 mnt of iron ore fines (Fe 54-65%), was booked at INR 4,220-6030/t. For the 1.19 mnt of iron ore lumps (Fe 58-65%) auction, buyers successfully bid for around 1.05 mnt at INR 4,850-7,850/t.Bids in the auction increased by around INR 300-1,000/t and INR 150-1,300/t, respectively, against the set base prices for fines and lumps. Hike in bids was owing to active buying amid restocking before upcoming monsoons.

Pellet offers rise w-o-w: Pellet (6-20 mm, Fe 62.5%) prices in Odisha's Barbil increased last week by INR 500/t w-o-w. The current assessment stands at INR 9,200/t ($110/t) loaded to wagon. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur increased by INR 400/t ($5/t) w-o-w to INR 10,100/t ($121/t) exw on 24 May. Meanwhile, BigMint's India pellet (Fe 63%, 3% Al) export index (FOB east coast) increased by $5.5/tonne (t) w-o-w to $109/t on 22 May.

Hike in global iron ore prices: The benchmark iron ore fines price increased w-o-w by $3/t to $121/ t CFR China on 24 May. The rise in seaborne market activity is due to carryover effect from recent economic news, as well as increased demand for downstream steel products. As per reports, the decreased premiums for medium-grade fines may be attributed to the growing stockpiles of iron ore at ports. Meanwhile, decrease in finished steel inventory might drive the demand for raw materials.