Global iron ore prices have slid from a 10-year high of $214 per tonne in June to $125 per tonne as of October first week.
Domestic prices have mirrored the global trajectory, correcting 28% from a high of Rs 7,787/tonne in July. However, the fall in domestic prices has been less steep compared with the global slide.
The domestic iron ore market has been facing a supply crunch since the expiry of leases on 37 operational mines (40-45 MT equivalent) in March 2020, which coincided with a nationwide lockdown.