Rupee, firm demand to keep domestic iron ore prices elevated in near-term

The price outlook in the domestic market is the antithesis of global forecasts

The rupee’s slump and strong demand from end-use industries will keep domestic iron ore prices elevated in the near term, unlike the trend in international prices.

A report from ratings agency CRISIL says the price in the country have been shored up by robust growth in demand and elevated prices of pellets, an intermediate product. Over six years, benchmark prices of 62 per cent iron ore fines abroad have remained $65-70 a tonne. But, domestic prices have risen 40-45 per cent over last year and this grade of ore trades at a 16 per cent discount to the landed price,