Will Odisha Merchant Miners Revise Iron Ore Prices?

Following the constant downturn in semi-finished and finished steel prices, market expects Odisha merchant miners to revise iron ore prices in the near short term. Current SteelMint assessment of 5-18mm is at INR 3,700-3,800/MT and for fines is at INR 2,000/MT ex-mines, including Royalty, DMF & NMET, GST extra). As per the sources, market participants are expecting a price cut from the Odisha merchant miners soon. Although miners haven't announced any indications yet but trade sources are expecting a reduction of INR 150-200/MT.

It can be inferred from the above table that Odisha iron ore lump prices have come down by INR 200-300/MT in a month's time however pellet prices in Durgapur have moved down by INR 800/MT. However C-DRI prices have weakened by INR 1,300/MT and billet by INR 600/MT M-o-M.

Global spot iron ore fines index down by around USD 30: The global iron ore fines prices (Fe 62%) has decreased to USD 83/MT, CFR China as assessed yesterday (21th Aug) against being USD 115/MT, CFR China a month back. The prices have dropped by around USD 30-32/MT against hovering at five years high levels at USD 126/MT, CFR China towards early July. Prices were down around USD 5/MT D-o-D.

Indian low-grade iron ore fines export prices fall - Following this low-grade Indian iron ore fines export prices have come down by USD 20-25/MT in a month's time.