India: NMDC Chhattisgarh Rolls Over Iron Ore Prices for November Deliveries

India’s largest iron ore producer - National Mineral Development Corporation (NMDC, Chhattisgarh) has kept iron ore prices unchanged for Nov’17 deliveries. In the month of Oct’17, the miner had reduced prices by 5%.

C.G. based units increased iron ore procurement sharply in Oct’17 - As per rake movement data maintained with SteelMint, NMDC supplied 42 rakes to C.G. based units in Oct’17 compared to 27 rakes in Sept’17.

Outside state based units sourcing down owing to railway line disruption - Sourcing by outside state based units have fallen sharply in Oct’17. Iron ore procurement of outside C.G. based units decreased 45% M-o-M to 126 rakes in Oct’17 against 231 rakes in Sept’17. RINL (Vizag Steel) decreased sourcing by 18% M-o-M to 79 rakes of iron ore in Oct’17 against 96 rakes in Sept’17. Transportation on this route has been badly affected following disruption of railway line connecting Andhra Pradesh.

Sponge iron prices in central India declined up to 7% in Oct’17 - Sponge iron prices in central India fell in 1st half of Oct’17 amid weak trade activities and then started increasing towards the month end. Monthly average C-DRI (80 FeM) prices in Raipur fell 7% M-o-M to INR 16,900/MT (ex-works) in Oct’17.

Monthly average global iron ore fines index fell by USD 10/MT - The iron ore fines prices in China fell amid announced sintering cuts Monthly average spot iron ore fines (Fe 62%) prices were analyzed at USD 61/MT, CFR China in Oct’17 which were USD 71/MT, CFR China in Sept’17. Amid fall in global iron ore prices, offers for imported South African lump to India have also moved down.

Odisha based major miners had kept iron ore prices unchanged in Oct’17 and are maintaining with the same prices as of now. 

NMDC (C.G.) iron ore prices for Nov’17

F.O.R prices in INR/MT
Royalty, DMF, NMET and other taxes extra
Source: SteelMint Research