India: Are Odisha Merchant Miners Considering Price Hike in Iron Ore?

SteelMint has learned from the market sources that, few Odisha based major merchant iron ore miners are in discussions for revision in iron ore offers this week.

Amid picking up of pellet export trades from India and high global iron ore fines price, merchant miners seems to be considering hike. However, an announcement is awaited from most of them and clarity is expected in the coming few days.

SteelMint learned that few miners like RP Sao and KN Ram have raised offers recently. Revised offers for 5-18mm (Fe 63%) stands at INR 4,200-4,300/MT (ex-mines).

RP Sao revised offers for iron ore fines (Fe 63%) at around INR 2,200/MT (including royalty, DMF & NMET). The prices mentioned are for bulk quantity purchase an advance payment basis.

Indian iron ore export volumes increased by 14% to 1.36 MnT as against 1.19 MnT in Mar’19. On yearly basis, iron ore export increased by 15% as against 1.18 MnT in the month of April’18 last year. Iron ore exports from India have climbed to 1-year high as similar level of exports was last seen in Mar’18 at 2.63 MnT.

However, whether the current price hike in iron ore would be absorbed by the market or not is a matter of concern. P-DRI prices in Durgapur is at INR 17,500/MT against INR 19,100/MT a month before.

Odisha - India's largest iron ore producing state recorded increase in iron ore production to 109.74 MnT, up by 11% for the fiscal year FY’19 as against 98.87 MnT in last fiscal FY'18, according to the provisional data of Odisha Govt. maintained by SteelMint. The figures include the type of material - fines, lump, and concentrate.