Published: October 11, 2018 |

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Iron ore imports into the country zoomed 190 percent to 6.34 million tonnes (mt) during April-August, the first five months of this financial year.

Data from the Pellet Manufacturers Association of India (PMAI) show a projection of over 12 mt for the full year. In 2017-18, ore import was 8.6 mt, itself 48 percent higher than in 2016-17.

Imports are on an upswing since steel plants on the coast have shown an increasing tendency to import the key ingredient. Importing is the cheaper option for such units compared to buying from the domestic market.

A senior executive with a steel company said, “Price hikes (of ore) in the domestic market have been exorbitant in the past three to four months. Importing of ore is viable for operations.”

Between July and September, prices of iron ore fines in Odisha, the largest producing state, rose 80 percent, while prices of lumps moved up 29 percent. Government-owned NMDC, the single biggest producer, raised prices twice last month. In the latest instance, it raised the price of lumps by 8.4 percent to Rs 3,850 a tonne and that of fines by 6.4 percent to Rs 3,310 a tonne. The company ascribed this to less production due to the rains and robust demand, with firming up of steel and sponge iron prices.

Source: Business Standard

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