OMC to reduce Iron Ore prices by 22% : Sources

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Bhubaneswar: Considering the demands of the steel industry, Odisha government-owned miner Odisha Mining Corporation (OMC) has decided to slash Iron Ore prices up to 20-22 per cent for the upcoming Iron Ore auctions, according to sources. Following this reduction, OMC has brought its prices down to the level of NMDC.

OMC has taken the decision during a meeting held on Thursday at its Bhubaneswar headquarters. Accordingly, the base price for Daitari CLO has been reduced by 21.42 per cent to Rs.2200 per Metric Tonne (MT).

The Odisha based steel units under the banner of Kalinganagar Industries Association had demanded the miner to reduce Iron Ore prices up to Rs.800 per tonne for the next 6-8 months.

OMC   had conducted    Iron   Ore e-auction on   28th April    2020   by reducing the base price by only    Rs.350 per MT   to    Rs. 800    per    MT   for Daitari  CLO  Iron  Ore.   However, due to such high base price,  none of the bidders participated in the e-auction and the price could also not be derived for  LTL buyers.

Last week, India’s largest miner NMDC had announced a further reduction in Iron Ore prices by Rs. 470 per MT. After this reduction, the price of 65.5% grade (6-40mm) CLO has been fixed at Rs.2250 per tonne while the price of 64% grade (-10mm) Iron Ore fines has been fixed at Rs.1960 per tonne. With this, the PSU miner has reduced Iron Ore prices more than Rs. 1,000/- in the last 2 months.

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