Indian iron ore market overview - week 43, 2020

India iron ore market continued to face tighter availability of high-grade ore in Odisha. Iron ore e-auctions resumed in Karnataka after gap of two-weeks due to technical issues. Goan govt raised iron ore transportation rates. Market sources highlighted that western India based steel mills may book an imported iron ore lump vessel from South Africa on tighter domestic availability.

Odisha - Amid tight availability of high-grade iron ore in the merchant market in Odisha recently dispatches of Sarda Mines (SMPL) have been stopped by the Odisha government even as the iron ore miner pursues its clearances with the Ministry of Environment and Forest, Climate Change (MoEFCC).

Earlier last week, KJS Ahluwalia moved the High Court of Orissa seeking six more months for dispatches.

Karnataka - Auctions resumed in Karnataka after a gap of two weeks in early Oct'20 owing to technical issues. NMDC's auctioned lots majorly fetched flat bids. However that of private miners have witnessed hike in bids by upto INR 960/t in recent auctions held. Also, pellet offers have also picked up during the week to INR 8,600- 8,800/t.

Goa -The state government of Goa has announced increase in the iron ore transportation rates by INR 2/t. The revised rates stand at INR 14.50/t for first 10 kms, INR 14/t for 10-20 kms and INR 13.5/t beyond 20 kms. The government of Goa has directed the transportation of the minerals, nearly 4 mn t lying in the state to be completed by 31st Jul'20.

Indian iron ore prices: