Indian iron ore to tune of 20 million tonnes extracted in Goa

Domestic iron ore prices are expected to remain high in the coming months, beating down factors that could put downward pressure on the key steel making raw material. State-owned Odisha Mining Corporation said that it has hiked its floor price for April. The price of iron ore lumps was raised by 16 per cent to Rs 2,800 per tonne from Rs 2,400 in February, and that of fines was hiked by 14 per cent to Rs 1,600 per tonne from Rs 1,400 per tonne. The sponge iron industry’s demand for lumps and the pellet segment’s demand for fines triggered the price increase for the current month.

NMDC has raised prices in some clusters. An OMC executive close to the development told Business Standard without clearing the air on decisions regarding iron ore pricing that “The next price revision depends on international price movements. There is a glut in iron ore supplies in Odisha but the demand remains buoyant.”

International prices have moderated in the past one month. NMDC, which has kept its iron ore price for April unchanged, said it increased prices in clusters in which the demand was strong.

An NMDC official told Business Standard that “We are not revising overall ore prices but looking at cluster-to-cluster demand. At current rates they are competitive in the domestic market.”

The miner had registered a growth rate of 20% in production and 24% in sales of iron ore during 2016-17 over the previous financial year.

Source : BUSINESS STANDARD