India: Odisha Merchant Miners Increase Iron Ore Prices amid Hike in Sponge Prices

Iron ore prices in India's largest iron ore producing state have been increased by the private miners. Lump prices have been increased by INR 300/MT and fines by INR 150/MT.

India's largest merchant iron ore producer - Rungta Mines and others like KJS Ahluwalia and Kaypee Enterprises has yesterday announced an increase in price. The hike is being attributed to the considerable increase in sponge prices. The shortage of sponge due to reduced production has been pushing its prices up lately.

The basic raw material seems to have sparked the attention after few reductions in prices by Odisha miners in last couple of months. The private mines in order take advantage of the upward demand have increased Lump prices by up to INR 300/MT and fines by INR 150/MT. The other miners Serajuddin Mines, Essel Mining and Indrani Patnaik are likely to follow suite very soon as their counter parts.

Odisha Mines iron ore prices as on 17^th Aug, 2017

*Loaded to wagons in INR/MT & incld Royalty, DMF & NMET wef 16^th, Aug’17.
Ex-mines prices INR/MT & incld Royalty, DMF & NMET
GST@5% extra
Source: SteelMint Research

India’s largest iron ore producing state - Odisha which contributes nearly 50% share in country’s ore output. State’s iron ore production climbed to all time high in FY17. The output increased from 75.75 MnT in FY16 to 94.17 MnT in FY17. State captive iron ore production escalated by 17% Y-o-Y while merchant iron ore production moved up by 27% Y-o-Y in FY17. Odisha iron ore production has exhibited sharp increase of 24% Y-o-Y in FY17.

The merchant iron ore producers in Odisha, Rungta Mines remained the largest producer and registered increase of 30% Y-o-Y to 22.87 MnT in FY17. Other major merchant iron ore producers were Serajuddin Mines - 10.89 MnT (up 7% Y-o-Y) and KJS Ahluwalia - 5.61 MnT (up 39% Y-o-Y).