Iron ore price offers remained firm in Odisha as some miners like Rungta Mines and KJS Ahluwalia increased offers in January tracking the firm sponge iron and steel prices, industry sources said.
While Rungta increased lumps offers by ₹400-500 per ton and fines offers by ₹300 per ton, KJS Ahluwalia increased lumps offers by ₹500 per ton and fines offers by ₹300 per ton.
Meanwhile, NMDC limited increased the prices of lump ore and to ₹3,100 and ₹2,760 weight per metric ton with effect from January 2, 2018, from ₹2,600 and ₹2,260 weight per metric ton in December 2017 respectively, the company said in a BSE filing.
India’s iron ore production surged by 22 percent in the financial year (FY) 2016-17 to 194 million tons (mt) from 156 mt in FY16. Of the total production, steel industries consumed 126.67 mt and around 25 mt were exported. The rest 40 mt low-grade material got added to the mine heads.
In FY18, India is likely to produce around 200-205 million tons of iron ore, industry sources said.
Hike upsets steel mills
The hike in iron ore prices has upset domestic steel companies which are now bracing for a spike in production costs.
It is slated to affect both large steel majors who do not own captive iron ore mines as well as smaller and medium steel firms that rely on merchant ore supplies to feed their units.
Companies fear, along with price increase in coal, refractory and other raw materials , it will force them to raise steel prices, sources said.
The price increase will spiral inflationary trend as steel prices will go up to absorb the increased prices of fines, they said.
“It will also impact steel production by smaller producers as cost increase and additional cash flow will restrict production,” sources added.
Hike to impact consolidation
Bu hikaye Steel Insights dergisinin January 2018 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Steel Insights dergisinin January 2018 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Steel's Net Zero mission
The country’s commitment to achieving Net Zero within a targeted timeframe will now propel its steel sector towards a sustainable future in line with global trends.
Fuel Price Hike, Supply Chain Disruption Hurt Festive Sales
Supply chain disruptions and fuel price hikes have hurt festive sales in a big way as most auto majors posted decline in sales in October.
Seaborne coking coal offers remain range-bound
Seaborne coking coal offers moved in a narrow range in October amid global supply tightness and healthy spot demand.
Global crude steel output down 8% in September
China manufactured 74 mt in September, fall of 21% y-o-y while India’s production went up by 7% to 10 mt.
MOIL embarks on expansion projects
“Even though our country is blessed with manganese ore reserves, we import 50% of the domestic requirement. We have to lower our import dependence and save precious foreign exchange.” Ram Chandra Prasad Singh, Steel Minister
Iron ore handled by major ports down 17% in H1
The 12 major Indian ports handled 27 mt of iron-ore during H1 of 2021, down by 17% from 33 mt recorded for the corresponding period of previous year.
Shrinking China output to boost India exports
“In the third quarter of 2021, the company actively responded to the pressure from external policies, such as production curtailment and dual control system on energy consumption and intensity, as well as coal resource shortage and surging prices.” Baoshan Iron and Steel Co Ltd
Indian Railways' iron-ore handling up 25% in H1
Indian Railways in April-September of 2021 (H1) transported 84 mt of iron ore, up by 25% over 67 mt during April-September 2020.
September crude steel production up 7.2% y-o-y
India’s crude steel production in September 2021 grew 7.2 percent to 9.547 million tons (mt) over September 2020 but was down by 3.2 percent from August 2021 output, provisional steel ministry data showed.
“Five enablers: way forward to sustainable cleaner steel”
Right and scalable technology, appropriate policy guidance by government, access to finance to fund transition, willingness of customers to pay for cleaner products and infrastructure for use of new technologies are the need of the hour for the sustainable and cleaner steel industry, according to Madhulika Sharma, Chief Corporate Sustainability, Tata Steel.
