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                                                         Increase in prices of India iron ore imports domestically

During April-August, the fiscal year’s first five months, iron ore imports into the country increased by 190 percent to 6.34 million tonnes (mt). Whereas the data provided by PMAI (Pellet Manufacturers Association of India) indicates yearly forecast of 12 mt. The ore import in 2016-17 was 48% lower than the 2017-18 which is 8.6mt itself. Comparatively buying the ores from the local market is more expensive than getting import done as reported by a senior executive of a steel company that from the last 3 to 4 months, increase of price in the local markets have been ridiculous and importing is a better option, since the steel plants on the shore have highlighted growing trend to import this vital ingredient.

The local production of iron ore is growing as the production in 2017-18 done by country is 210mt. Not only this the Government owned and the only largest producer NMDC rose prices twice the previous month. Recently increasing the prices of fines by 6.4 percent to Rs 3310 a tonne and that of lumps by 8.4 percent to Rs 3850 a tonne. In monetary year 2019, it is said to be that the output is listed to increase by 2-5 percent. Generally the steel plants have opposed to elate lower grade fines, as the most viable for their operations is higher grade ore. By 2020, the need of higher grade (62-65 Fe) is estimated at 236mt/year which can be increased to 480mt/year in order to fulfill the predicted capacity of steel of 300mt/year.

• [Editor:janita]