Odisha’s major merchant miner – Essel Mining and Industries has announced another price cut in iron ore recently. The miner has reduced iron ore prices by INR 400/MT (USD 5.6) in lump and INR 300/MT (USD 4) in fines w.e.f (17 Dec’18).This is for the third time in a month that they have reduced iron ore prices. Prior to this they had slashed offers on 18th Nov and 27th Nov’18.
SteelMint learned that miners’ current trade price for Fe 63% fines from its Jilling mines is around INR 2,645/MT and for 5-18 mm (Fe 65%) around INR 5,575/MT (Ex-mine prices, including Royalty, DMF & NMET).
Essel Mining is one of the major merchant iron ore mines in Odisha.The miner has EC limit of 4 MnT p.a. for its Koira mines while its Jilling mines has EC limit of 6.2 MnT pa.
Why have Odisha iron ore prices come under pressure?
Increased production after monsoons – Odisha iron ore production increased to 9.21 MnT in Oct’18 as against 6.43 MnT in Sept’18, according to data maintained with SteelMint.
Falling pellet prices – Domestic pellet prices in India have come down in last one month on falling semis steel prices along with decline in pellet export offers. Pellet offers in Durgapur have come down by INR 800/MT in a month’s time.
China’s shift towards low grade iron ore – Amid falling steel prices, Chinese mills have shifted to usage of low grade iron ore fines. Thus high grade iron ore fines export has slowed down from Odisha.
3rd Indian Iron Ore and Pellet Summit, 18-19th Feb, Delhi NCR
Keen to keep a track of global and national iron ore prices in the coming year and how will scenario be in 2020 mine block auctions. Book your seat at the 3rd National Iron Ore and Pellet conference to be held at Gurgaon in February next year.
To get more insights on the Indian Iron Ore, participate in the 3rd Indian Iron ore and pellet Summit, 18-19th Feb 2019, Delhi NCR.