Rejecting the claims of state based steel makers that iron ore sold by Orissa Mining Corporation 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.

Me Saswat Misra MD of OMC said that “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.”

Mr Misra asked “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?”

He further said if a Chinese steel maker can make profit after buying ore from India, then it should be same with Orissa-based steel mills.

The MD explained that “If Orissa steel mills are not making profit, it means they are using inferior technology and process. The steel market is not for those who are financially, economically and managerially backward. Iron ore pricing is a cyclical process, and there will be ups and downs.”

As per the current practices, OMC floats tender for 10% of its salable quantity and fixes the highest bidding amount as the benchmark price of that grade ore for three months.

The All Odisha Steel Federation, an association of steel makers who have signed Memorandum of Understanding with the state government to set up steel mills , has termed the tender process faulty’and said it is being manipulated by a few players, who internationally bid for higher amount to help increase the price of ore produced by private miners.

(Sourced from BS)