MMi Daily Iron Ore Report (Jan 7)

India’s Ministry of Coal has urged the Uttar Pradesh government to accelerate development of the Saharpur Jamarpani captive coal block in Jharkhand to strengthen long-term fuel security for the state’s thermal power plants and reduce reliance on external coal supplies, particularly from Coal India Limited. Located in Jharkhand’s Dumka district, the block has reserves of more than 973 million tonnes and was allocated to Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) in August 2015 to meet the coal requirements of its thermal power projects. However, more than 10 years after its allocation, the block has yet to be operationalised.

Novosibirsk-based Promresurs has acquired stakes in two coking coal companies in Russia’s Tuva Republic. The company acquired 100% of Ulugkhemugol from Severstal on 27 August 2026 and 81.3% of Mezhegeyugol from Raspadskaya on 3 September 2026. Severstal sold Ulugkhemugol as part of its strategy to reduce solid-fuel use in steelmaking. Mezhegeyugol produced 0.6 million tonnes of metallurgical coal from January to August 2026. However, Raspadskaya’s sale of the asset appears linked to portfolio and financial optimisation amid weak coal prices and losses. Both assets face logistical constraints due to delays to the Kyzyl-Kuragino railway, which is intended to connect Tuva’s coal-producing areas with Russia’s main railway network.

Iron ore futures were weaker today. The DCE most-traded I2701 contract settled at 710.5 yuan/mt, up 0.28% from the previous session. Qingdao port spot prices were broadly flat. Traders were active in offering while mills stayed on the sidelines. Spot trading was thin.