India: Odisha Merchant Miners Widen Discount on Bulk Iron Ore Fines Purchase

According to trade sources report to the SteelMint, few Odisha based major merchant iron ore miners are heard to have decreased offers on bulk quantity purchase of fines against the last offer.

Current trade prices for fines (Fe 63%) for bulk bookings is around INR 1,600-1,700/MT (ex-mines, including Royalty, DMF & NMET), down against last assessment against INR 1,800/MT (ex-mines, including Royalty, DMF & NMET). A month back, trade reference prices were INR 2,000/MT for fines.

However, trade prices of lump (5-18mm, Fe 63%) is presently assessed at INR 3,800-4,000/MT (ex-mines, including Royalty, DMF & NMET), stable against last week.

Market participants were anticipating that miners may decrease offers as competitive offers of iron ore lump in eastern India have kept domestic pellet prices under pressure. Odisha merchant miners are looking at scaling up their iron ore production in order to utilize their remaining Environmental Clearance (EC) approved for FY'19 (Apr 2018 - Mar 2019). Therefore, miners may explore the export opportunity to de-stock their ore.

Durgapur pellet offers have increased slightly this week by INR 100/MT to INR 5,600-5,700/MT this week against the end of last week's assessment of INR 5,500-5,600/MT amid hike in P-DRI offers.