Odisha’s Serajuddin Mine Hikes Iron Ore Lump Offers
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Serajuddin- Odisha's major merchant iron ore miner has increased iron ore lump offers effective from today (21st May’19). Miner has increased prices for 5-18 mm (Fe 63%) by INR 300/MT to INR 4,000/MT (ex-mines, including Royalty, DMF, & NMET) as against last offers at INR 3,700/MT. The prices for iron ore fines remain unchanged at INR 2,000/MT (ex-mines, including Royalty, DMF, & NMET). However, official confirmation still remains awaited.
Last week, SteelMint learned from sources that few miners like RP Sao, KJS Ahluwalia and KN Ram raised offers. SteelMint’s reference price assessment for Odisha stands at INR 4,000/MT (ex-mines) for 5-18mm and INR 2,000/MT for fines Fe 63%.
Serajuddin has recorded iron ore production at 8.07 MnT in FY'19, down 11% against 9.03 MnT in FY’18. The miner has started operations at its pit which was closed for quite some time owing to the technical issue. The miner produces around 10 MnT iron ore annually and has an EC limit 15.15 MnT p.a.
Serajuddin Mines Prices as on 21st May’19
| Material Type (Size mm) | Grade (Fe %) | Prices in INR/MT | Change |
| Fines | Fe 63% | 2,000 | - |
| 5-18 mm | Fe 63% | 4,000 | +300 |
Prices mentioned are ex-mines, inclusive of Royalty, DMF & NMET, GST extra
Source: SteelMint Research
Global iron ore price hike
The rise in global iron ore prices have favored domestic price hike. Spot iron ore fines Fe 62% index has picked up to USD 100.4/MT, CNF China as against USD 94/MT, CNF China towards beginning of last week. The increase is due to Vale forecast of dam rupture. The prices have hit 5 years high as the prices were last seen in May'14.
