India: NMDC Raises Iron Ore Prices for 2nd Time in Jan’20 – Sources

NMDC Ltd- India’s biggest iron ore producer is heard to have raised iron ore prices today, as per market sources. Prices of iron ore fines have been increased by INR 350/MT, Baila lump by INR 400/MT and DR CLO by INR 470/MT. Revised prices will be effective from tomorrow i.e. 19 Jan’20.

Prices of Baila lump ore is at INR 3,200 per wet metric tonne (wmt), Baila iron ore fines are at INR 2,910 per wet metric tonne. FoR prices mentioned are excluding Royalty, DMF, NMET and other taxes.

This is miner’s second price hike in Jan’20 as prior to this it had raised offers on 02 Jan’20.

NMDC conducted auction from it’s Chhattisgarh mines for12,000 MT calibrated lump ore, 16,000 MT ROM, 28,000 MT iron ore fines and 8,000 MT iron ore lumps on 14 Jan’20.According to market sources report to SteelMint, the entire quantity of DR-CLO offered was booked witnessing a hike of INR 400/MT above the set base price. As per sources, the DR CLO lots received the highest bids at INR 3,675/MT against the set base price of INR 3,275/MT.

Merchant miners from Odisha had also increased iron ore fines and lumps offers, fines by around INR 600-700/MT and in lumps around 1,000-1100/MT since mid-Dec’19. If market sources are to be believed, few major miners have already made aggressive bookings in last months as steel mills were actively restocking material ahead Mar’20 lease expiry.

Indian pellet export prices are also hovering around 5-month high at around USD 120-122/MT, CFR China.

 

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