India: Odisha Merchant Miners Widen Discounts on Bulk Iron Ore Purchase

SteelMint has learned from the market sources that, Odisha based major merchant iron ore miners are heard to have increased discounts on bulk quantity purchase against last offer.

As per the sources, current offers for fines (Fe 63%) bulk bookings have come down to around INR 1,800/MT (ex-mines, including Royalty, DMF & NMET) which was earlier traded at INR 2,000/MT (ex-mines, including Royalty, DMF & NMET) a month back. Prices mentioned are for quantity booking of around 100,000-200,000 MT on advance payment basis.

SteelMint has also learned from the sources, that Odisha’s Serajuddin mine has today announced discount of INR 600/MT on the sale of 5-18mm iron ore lump. However, as per company sources, the discount is only for the buyers who had earlier booked quantity but couldn’t take delivery owing to the rake availability issues. The discounted rate stands for 5-18 lumps at INR 4,000/MT ex-mines basis, including Royalty, DMF & NMET.

Market participants are expecting offers to move down in near short term considering decline in pellet & sponge prices in the last one month. Also, the miners who have utilized their EC limits for this year will start production from April onwards which will increase supply and put prices under pressure.

SteelMint’s assessment for pellets in Durgapur region has come down by INR 500-600/MT in a month’s time.