India: NMDC hikes iron ore prices upto 14% for Dec'20

India's state-owned iron ore miner - National Mineral Development Corporation (NMDC) has announced the price of hike in iron ore for Dec'20. Prices have increased further upto 14% for its Chhattisgarh based mines. Last month NMDC increased iron ore prices twice.

The miner has raised the price for Baila fines and lump by around INR 500 while that of DR CLO by INR 580/t. Company's fines price has already hit an all-time high while that of lumps are getting closer to all-time high levels.

The revised prices for Baila fines (Fe 64%) stands at INR 4,110/t, Baila lump (Fe 65.5%) is assessed at INR 4,500/t and DR CLO (Fe 67%) at INR 5,220/t. NMDC sets prices on a free-on-road (FoR) basis and does not include royalty and taxes.

Reasons behind hike in prices -

• Hike in bid prices at SAIL's auction - Steel Authority of India Ltd (SAIL) has booked 28,000 t iron ore fines (Fe 60.07%) from its Dalli mines in Chhattisgarh on 26th Nov through an e-auction at INR 4,800/t (loaded into rakes and including royalty), SteelMint learned from its sources. The bid price has increased by INR 630 as against the last e-auction held at Rajhara mines (Fe 60.2%) which fetched bids at INR 4,170/t.
  
  
• Hike in iron ore prices from Odisha - Odisha Mining Corp (OMC) has scheduled its next iron ore e-auction on 2nd Dec'20. The auction is being conducted for 910,000 t iron ore lump. The miner has increased the base price by upto INR 1,600/t ($22) against last auction's base price held on 1st Oct'20.
  
  
• Pellet prices in Raipur rise significantly - SteelMint's domestic pellet price assessment has increased by INR 2,000/t m-o-m to INR 11,550/t DAP Raipur by end Nov'20.
  
  
• Sponge iron prices in Raipur up INR 3,200/t ($43) - Instead of P-DRI add C-DRI Sponge iron (C-DRI) prices in Raipur also increased around INR 3,200/t in a month's time to INR 25,900/t exw Raipur.
  
  
• Imports turn costlier as imported ore prices rise - Southern India based steel mills have recently booked about 50,000 t iron ore lumps vessel from South Africa, sources have reported to SteelMint. The deal price is heard at around $135-140/t CFR Krishnapatnam port and the vessel is expected to reach by early Jan'21. Spot iron ore fines (Fe 62%) price inched higher by $15 m-o-m to $133.05/t CFR China.
  
  
• Indian steel mills hike finished steel prices - Indian steel mills like JSW Steel, AM/NS India etc have announced hike in finished steel prices. Indian steel major - JSW Steel has yesterday announced hike of INR 2,000/t in its list prices for HRC and CRC, SteelMint learned from the sources. Notably, the effective price of HRC & CRC after the hike stands at INR 46,750- 47,150/t and INR 55,750- 56,150/t (exy-Mumbai) respectively.