Iron ore prices are set to rise 30-40% after Odisha auctions: Crisil

The hike in iron ore prices in the aftermath of auctions will hinge on the auction premiums

Domestic iron ore prices are set to escalate between 30 and 40 per cent after mining commences again from the lapsing merchant blocks in Odisha following the successful conduct of online auctions.

A study by CRISIL Research illustrates that premium for most of the mines would exceed 40 per cent in a majority of the mines put up for auctions. The assumptions are based on the reserve price set by the Odisha government for auctions of iron ore blocks. The floor price for almost all blocks save Nuagaon ranges from 15-35 per cent of the sale value of the mineral