MUMBAI (Scrap Register): On the back of recent Supreme Court order against the case of rampant illegal mining, Indian Steel companies fear about the increase in Iron ore prices in Odisha.
AS per the court order, the miners which are responsible for overproduction will have to shell out amount that is decided by the court appointed central empowered committee (CEC).
“Given the backdrop of the Supreme Court judgment, the miners would be looking to maximise realisations from their operations to offset the compensation burden imposed on them. The fallout would be an accelerated increase in iron ore prices, the triggers for which are already in sight. This would needlessly burden the steel makers, especially the ones operating without captive ores, and raise the cost of steel production, making it uncompetitive,” a Steel company quoted.
The main reasons considered to be the factor for the increase in prices are Strong demand for iron ore fines in China and sustained domestic demand. Odisha’s iron ore supplies were important as the state largely catered to the domestic market as opposed to Goa and Karnataka where a bulk of the production was exported.