Odisha’s state-owned miner- Odisha Mining Corporation (OMC) had scheduled its iron ore e-auction i.e. 03 Aug’18. Total quantity put under the auction was 290,000 MT iron ore Lumps. The material was from Gandhamardan, Daitari, and Koira mines.
According to market sources report to SteelMint, the e-auction received a good response. Out of the total quantity of 290,000 MT iron ore lumps offered, around 90% (257,000, MT) of material got booked.
Gandhamardan mines bids increased by INR 200-250/MT against the set base price at INR 2700/MT for 10-180mm Lumps. Bids for Lumps offered from Daitari mines also observed an increase in bids by INR 150-200/MT against base price which was INR 3,800/MT. Lumps offered from Koira mines observe an increase of INR 50-100/MT against base price INR 3800/MT.
Traders were restricted to take part in this auction.
OMC had raised base prices by INR 400/MT against its previous auction conducted in June. Other Odisha based major merchant miners had announced a price hike of INR 300/MT in lump and fines earlier this month following an increase in Royalty. Again last week miners have raised fines prices by INR 150/MT on increased pellet export realization.
Base price comparison of OMC Iron ore e-auctions-
| Mines | Size (mm) | Fe (%) | Base Price as on 05 Jun’18 | Base Price as on 03 Aug’18 | Bid Price on 3rd Aug’18 | Quantity Offered (MT) | Quantity Sold (MT) |
| Gandhamardan | 10-40 | 62% | 3,500 | 3,500 | 3,500 | 90,000 | 57,000 |
| 10-180 | 65% | 2,500 | 2,700 | 2,900-2950 | 15,000 | 15,000 | |
| Kurmitar (Koira) | 10-40 | 62% | 3,600 | 3,800 | 3,850-3,900 | 80,000 | 80,000 |
| Daitari | 10-40 | 62% | 3,400 | 3,800 | 3,950-4,000 | 105,000 | 105,000 |
| Total | 290,000 | 2,57000 | |||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
OMC’s last e-auction was held on 09 July’18 for 420,000 MT iron ore fines. Out of the total quantity, around 80% of the material (334,000 MT) received bids. The bids received by Gandhmardan mines stood up by INR 150-200/MT while for Daitari it stood up by INR 50-100/MT, against the set base price. The material from Koira mines received flat bids at 850/MT.
According to data maintained with SteelMint, OMC iron ore production for H1 CY’18 recorded at 5.48 MnT, 11% of total Odisha’s iron ore production.
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