The closure of six iron ore mines in Odisha created a supply deficit of 5.5 million tonnes. This is expected to increase the cost of producing sheet steel by about Rs 800-1000 /ton.
Following non-payment of compensation equal to 100 percent of the value of iron ore illegally mined prior to December 31, 2017, the Odisha government ordered a “temporary halt of operations” at six iron mines in the state with a cumulative nominal capacity of about 23 million tonnes per year.
The move caused a supply deficit of about 5.5 million tonnes in the current quarter, causing domestic iron ore prices to rise Rs 400-500 /ton in January 2018, while Odisha one-off ore prices increased by Rs 400.
Odisha mine closure creates iron ore shortage in India
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Azovpromstal® 31 January 2018 г. 11:18 |
