OMC hikes iron ore lump rates for Oct-Dec period

The Orissa Mining Corporation (OMC) has raised the prices of different grade iron ore lumps by as high as 10 per cent for the October-December period

At Koira mining area in Sundergarh district, the price of high quality iron ore belonging to BF grade has been raised by 10 per cent to Rs 5,300 per tonne, from Rs 4,813 in the previous quarter.

In iron ore trade hub Barbil, BF grade ore rates sized between 10 to 40 mm rose by 3.75 per cent from the previous quarter, while in Gandhmardana area, soft grade and BF grade iron ore rates with minimum 65 and 62 per cent iron content respectively were upgraded by six percents.

OMC prices are considered benchmark rates across Orissa, the largest iron ore producer in the country. OMC decides the ore prices every quarter by auctioning 10 per cent of total supply for the three month period.

Iron ore rates in Orissa now range between Rs 4,203 to Rs 5,300 per tonne, compared with Rs 4,050 to Rs 4,800 in the previous quarter. These rates are ex-mine basis, including royalty dues and excluding taxes.

The rate increase reflects higher demand for the key steel ingredient as out of nearly 200 iron ore mines in the state, only half are operating at present. Mining activities in rest of the mines have been either suspended or shut down because of non-availability of statutory clearances.

All Odisha Steel Federation, an association of nearly 300 steel and related industries, had announced to slash jobs last month because of non-availability of the ore amid higher rates.

The rate hike of the iron ore lumps came at a time when prices of iron ore fines, the powdery form of the ore, have come down by nearly 10 per cent in international markets due to poor demand from major steel maker China.