Company’s auction received an overwhelming response. Koira mines’ whose most of the material was offered fetched bids 33% higher than base prices.
State-owned Odisha Mining Corporation (OMC), recently conducted e-auction for 905,000 MT iron ore on 28 Sept’16. The company received an overwhelming response. Around 855,000 MT material received bids out of the total offered quantity.
According to market sources, the auction fetched bids for all the lots offered in the e-auction except Gandhamardan’s low-grade fines (Fe 58-54%). In addition, the bids received were higher than base prices and were at a good premium.
Koira mines’ material received bids higher by 33% as compared to base prices. Base prices for 10-40 mm Koira mines lumps were offered INR 1,750/MT and bids received were at INR 2,300/MT. It is to be noted that Koira Mines, from which most of the material was offered, the company has increased base prices for 10-40 lumps by 3%, and for iron ore fines base prices have been reduced by 12.5% as compared to the previous e-auction.
The entire 50,000 MT lot of low-grade fines from Gandhamardan mines could not attract bids hence were remained unsold. However, the company is planning to re-conduct auction for the same shortly.
The material was majorily procured by C.G. and Odisha-based sponge manufacturers as well as steelmakers.
The material offered in the auction was from Gandhamardhan (130,000 MT CLO and 185,000 MT fines), Koira (300,000 MT CLO and 70,000 MT fines) and Daitari Mines (120,000 MT CLO and 100,000 MT fines).
In this e-auction, the company has made slight changes in the base prices for few grades. However, prices remain unchanged for few other grades.
Result of OMC iron ore e-auction held on 28 Sept’16
| Mines | Size (mm) | Fe (%) | Base Price on 28 Sept’16 |
Quantity offered (MT) |
Quantity Sold (MT) |
| Gandhamardan | 10-180 | 65 | 1,400 | 35,000 | 35,000 |
| 10-40 | 62 | 1,700 | 70,000 | 70,000 | |
| 5-18 | 65 | 2,000 | 25,000 | 25,000 | |
| -10 | 58-54 | 650 | 50,000 | No bids | |
| -10 | 62-60 | 800 | 135,000 | 135,000 | |
| Kurmitar (Koira) | 10-40 | 62 | 1,750 | 300,000 | 300,000 |
| -10 | 62-60 | 700 | 70,000 | 70,000 | |
| Daitari | 10-40 | 62 | 1,700 | 120,000 | 120,000 |
| -10 | 64-62 | 1,300 | 100,000 | 100,000 | |
| Total |
905,000 |
855,000 |
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Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
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