India’s largest state-owned mining company, the National Mineral Development Corporation (NMDC) has cut iron ore prices by 7.8 % for its December deliverable, Steel Mint has come to learn from reliable sources.
The current price of DR CLO is Rs 4,620, which has decreased by 7.8% M-o-M. The current price of Baila lumps and fines are Rs 3,550 and Rs 3,110 respectively, both of which has registered a sharp fall. While the price of lumps has fallen by Rs 300 M-o-M (a decline of 7.8%), the price of fines has plummeted by 6% M-o-M. The current price of ROM is Rs 3,285, which has slumped by Rs 275 — a 7.7% decline M-o-M.
NMDC Chhhattisgarh Prices for Dec’18
|Material Type||Current Price (in INR)||Current Price (USD/MT)||M-o-M (INR/MT)||M-o-M (%)|
Source: SteelMint Research
Reasons for Fall in Prices
1. Private Miners in Odisha had cut iron ore prices in last week of November on increased production and falling steel and DRI prices.
2. Indian pellet prices have dropped by around INR 1500 ($22) in last one month on falling export realizations.
3. Appreciation in Indian Rupee coupled with falling global iron ore prices have improved import parity
Will Indian Iron Ore Imports Rise?
However, the row that had ensued following the NMDC’s announcement of temporarily suspending operations at Donimalai in Karnataka does not seem set for a quick resolution with the Centre intervening to broker peace between the miner and the Karnataka government.
The state government had raised hackles by declaring a 80% premium on the overall sale price of iron ore from the Donimalai mines as a condition for extending the mine’s lease till 2038.
According to industry estimates, NMDC will suffer a loss of Rs 944 crore per annum if the 80% levy on the 7 MnT of iron ore mined from Donimalai is upheld.
Sources believe that matter will take more than expected time and iron ore imports to India will escalate till matter is solved.
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. 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