Orissa iron ore prices reflect global standard, says OMC

Bhubaneswar : Rejecting the claims of state-based steel makers that iron ore sold by Orissa Mining Corporation (OMC) is “exorbitantly" priced, the state-run resources company has said iron ore rates in the state are not higher than other states and rather, they are more or less similar to national and international prices. “Though our iron ore prices are not directly linked to international market, they reflect global price sentiments as many exporters are buying the commodity without any hesitation", said Saswat Mishra, managing director of OMC.

Earlier, the state-based steel makers had alleged 'manipulated bidding' in OMC tenders, and said OMC iron ore rates are close to National Mineral Development Corporation (NMDC) ore rates, which are linked to international markets. India’s largest iron ore miner NMDC fixes the ore prices on quarterly basis for its buyers in Japan and South Korea. The prices are calculated taking global demand and supply scenario into consideration. Similarly, iron ore exporters at Paradip port follow the price benchmark in China. If they do not protest about the pricing, why steel makers are making it an issue? asked Mishra.