Odisha's Serajuddin Mine Hikes Iron Ore Lump Offer by INR 300/MT - Update

Serajuddin- Odisha's major merchant iron ore miner has increased iron ore lump offers effect from today (11th Nov'19). Miner has increased prices for 5-18 mm (Fe 63%) by INR 300/MT to INR 3,700/MT (ex-mines, including Royalty, DMF, & NMET) as against last offers at INR 3,400/MT (ex-mines, GST extra).

Towards the end of last week, SteelMint's assessment for Odisha iron ore lump (5-18mm, Fe 63%) stood at INR 3,700-3,800/MT and for fines, Fe 63% is at around INR 1,700-1,800/MT (ex-mines, inclusive of Royalty, DMF & NMET). Fines price mentioned is for bulk-booking on upfront payment.

It is to be noted that Serajuddin had kept its fresh offers for 5-18mm lump on hold since mid-Oct '19 and the market was expecting the miner to raise offers.

However as per sources the miner has booked a decent quantity of around 5,00,000-600,000 MT lump at last offers of INR 3,400/MT ex-mines and has dispatches pending for the same, but, this could not be confirmed from a company official. It is to be noted that Serajuddin had kept its fresh offers for 5-18mm lump on hold since mid-Oct '19 where as other private miners were already offering around INR 3,700-3,800/MT and the market was expecting Serajuddin to raise offers in line with it.

Odisha - India's largest iron ore producing state recorded production for the month at 8.34 MnT down 11% amid monsoon, as against 9.39 MnT in Aug'19, according to the provisional data of Odisha Govt. maintained by SteelMint.

Serajuddin mines production recorded 11% drop to 1.27 MnT in Sept'19 as compared to 1.42 MnT a month ago. Production fell owing to monsoons.

Serajuddin mine produces around 10 MnT iron ore annually and has an EC limit of 15.15 MnT p.a.