Iron ore prices surge

KATM Exclusive

03 October 2016

As the steel prices are heard to be going up, sources informed KATM that domestic iron ore producers are all set to increase the iron ore lumps and fines prices. In recent auction OMC iron ore lump prices has seen a premium between INR 500-600/ton for 63.5% Fe lumps, costing at around 2300/ton ex mine.

Rungta Mines was heard to have already increased fines prices by INR 100/ton 62-63% at Rs.1200-1250/per ton ex mines in the market which may have allowed the steel mills to decide on their price hike early this month. It is also believed that other private iron ore miners will also hike their prices for the month in the same range. PSU iron ore miner NMDC is also likely to call on iron ore price change in the first week of Oct.

Both iron ore and steel prices are optimistically moving upwards keeping in view an expected good demand revival for steel in the festive season.

In the global markets, iron ore prices had been fluctuating in a range of USD 1-2.5 per tonne in the last  week. Traders were heard to have been taking very short positions in the week but majortity had already exited the markets due to the approaching China holidays.

Iron ore rose 0.4 per cent to $US56.10 overnight, according to The Steel Index, from $US55.90 the previous day at week closing. Prices are expected to remain stagnant in the same range till 10^th Oct.