Odisha's 2nd Largest Merchant Miner Cuts Iron Ore Prices

Odisha's 2nd largest merchant miner- Serajuddin Mine has reduced iron ore lumps and fines prices w.e.f today (24th Nov’18). SteelMint learned that miners’ current trade price for Fe 63% fines is around INR 2,300/MT and for 5-18 mm (Fe 63%) around INR 5,100/MT (ex-mines, including Royalty, DMF & NMET). Against last offers, this week offers have come down by INR 300-400/MT.

Miner is also heard offering further discount on the bulk purchase of around INR 300-400/MT.

Odisha based merchant miners were facing narrowed buying interest following which they are giving quantity discounts to stimulate the buying interest. Earlier this week, Essel Mining had also announced a price cut.

Following this, other Odisha based merchant miners are likely to cut offers next week.

Domestic pellet offers under pressure amid declining export offers -

Decreasing domestics pellet prices and export offers plunge in limited Chinese buying interest led the Odisha merchant iron ore prices soften. Durgapur (eastern India) pellet prices dropped 3 months low to INR 7,000-7,200/MT this week.

On the other side, Indian pellet export prices have come down further by USD 20-25/MT in last one month.

Fall in Sponge iron prices in eastern India -

Sponge iron (78 FeM) price assessment is around INR 22,300-22,400/MT in Durgapur against INR 23,000/MT a month ago. Amid limited trade inquiries, the decline in finish and semi-finish steel prices led the market comes under pressure.

Serajuddin mines are resumed operations at one of its blocks in Odisha in Oct’18. The operations were suspended owing to technical issues. This will add to supply of iron ore lump which was hampered from the past few months. Serajuddin mines Balda iron ore block has an EC limit of 15.15 MnT and produces around 10 MnT iron ore annually.