India: Thin Buying Keeps Odisha Iron Ore Prices Under Pressure

Suspension of operations at most of Odisha's sponge manufacturers, has weighed down prices of iron ore lump. SteelMint learned from the reliable sources that currently indicative trade prices for Odisha iron ore lumps 5-18 mm (Fe 63%) is around INR 3,600-3,800/MT (ex-mines, including Royalty, DMF & NMET) as against being INR 4,000/MT a couple of weeks before.

Similarly SteelMint's Odisha iron ore fines (Fe 63%) assessment stands at INR 1,800-1,900/MT (ex-mines, including Royalty, DMF & NMET) down by INR 300-400/MT against last couple of weeks.
However, trades continue to remain on the lower side amid the lockdown over Coronavirus effect. The pellet buying interest in the domestic market is not so active and hence the lump prices have also depicted a fall for the week, shared sources. Also major sponge manufacturers are holding iron ore stock with them, so they are not interested to go for aggressive buying.

Few major miners such as Serajuddin and Rungta mines (Jajang) whose leases expired by 31 Mar'20 have halted production. As per sources, ther aren't actively offering in the market and clearing their pending orders. Other miners like Indrani Patnaik, Essel's Koira mines are offering material presently.

Odisha iron ore production recorded at 15.31 MnT in Feb'19 up 9%, as against 14.05 MnT in Jan'20, according to the provisional data of Odisha Govt. maintained by SteelMint. The figures include the type of material - fines, lump, and concentrate.

Amid a phase of lockdown and lull, the Odisha steel & mines department had initiated action to resume operations of merchant iron ore, manganese and chromite mines whose lease validity had ended on March 31, 2020. The state government had successfully auctioned 21 lapsing merchant mines and Letters of Intent (LoIs) were issued to all successful bidders. But a countrywide lockdown and unavailability of manpower and truckers owing to the widespread Coronavirus scare had cast doubts on the future of their operations.