Odisha's Serajuddin Mine Cuts Iron Ore Offers
...
Odisha's second largest merchant iron ore miner has decreased iron ore offers effective from today (18th Apr 2018). Miner has decreased lump prices by INR 250/MT and fines by INR 150/MT. The miner produces around 10 MnT iron ore annually and has an EC limit 15.15 MnT p.a.
The miner has dispatched 9.56 MnT in CY'17 and remained a major source of iron ore to steel firms like JSW Steel, Essar Steel, Bhushan Steel along with other sponge and steel units.
JSW was the largest buyer of iron ore from Serajuddin in CY'17 at 1.84 MnT contributing 19% of total share of iron ore dispatches by Serajuddin Mines. Other major buyers were - Bhushan Steel 1.59 MnT (17% share), Essar Steel 1.23 MnT (13% share), and Rashmi Metaliks 0.85 MnT (9% share).
Prior to Serajuddin Mines, other major merchant miners in Odisha like Rungta Mines, Essel Mining, KJS Ahluwalia etc had reduced offers at the beginning of the month by almost similar amount.
Serajuddin Mines Prices as on 18th Apr'18
| Material Type (Size mm) | Grade (Fe %) | Prices in INR/MT | Change |
| Fines | Fe 63% | 2,200 | -150 |
| 5-18 mm | Fe 63% | 4,800 | -250 |
Prices mentioned are ex-mines, inclusive of Royalty, DMF & NMET, GST extra
Source: SteelMint Research
Iron ore prices in Odisha have moved down amid increased availability post resumption of mining operations at Essel Mining - Koira and Jilling mines, Serajuddin Mines after receiving consent from the Apex Court. RP Sao mines having an annual capacity of 5.7 MnT pa is also expected to resume sales shortly as it has already received 'consent to operate' from Supreme Court earlier this month.
In another major development, six iron ore & manganese leases of OMDC (Odisha Mineral Development Company) has also submitted compensation amount last week.
Thus increasing supplies may further pressurize domestic iron ore prices in Odisha in near term.
