Business Standard reported that iron ore prices are likely to harden in the Indian domestic market in the next few months owing to shortage of the commodity in Karnataka.

As per report, the supply from Karnataka, about 25% of the national output, is likely to decline if the Supreme Court accepts the recommendations of the Central Empowered Committee for putting a cap on production at 30 million tonnes per annum.

The report added that “Presently, iron ore lump prices are between INR 6,000 and INR 8,000 a tonne in the domestic market. These are likely to go up by 3% to 4% during the current quarter.”

Prices are INR 2,700 per tonne to INR 3,700 per tonne, at the e auctions in Karnataka. This excludes royalty, forest development tax and transportation charges.

(Sourced from BS)