465,000 MT iron ore fines auction is scheduled tomorrow for which base prices have been increased by INR 200-320/MT.
Odisha Mining Corporation (OMC) – a state-owned miner is to conduct an e-auction for 465,000 MT iron ore fines on 05 Sept’18. The material put under the hammer is from Gandhamardan, Daitari and Koira mines. Traders have been restricted to take part in this auction.
The miner has increased the base prices against last iron ore fins e-auction conducted in July. The base price for material offered from Gandhamardan mines is increased by INR 200/MT (18%) and for Koira mines increase is INR 300/MT (35%) against the last fines e-auction held. The iron ore base price from Daitari mines is also increased by INR 320/MT (15%) against the last fines e-auction held on 9th July’18.
Odisha based major merchant miners have increased fines and lump prices by INR 700/MT within a short span of time in the last week of Aug’18.
Base price comparison of OMC iron ore e-auctions-
| Mines | Size | Fe (%) | Base Price as on 07th Mar’18 | Base Price as on 09th May’18 | Base Price as on 09th July’18 | Base Price as on 05th Sept’18 | Change | Change | Quantity |
| (mm) | (INR/MT) | (INR/MT) | (INR/MT) | (INR/MT) | (INR/MT) | (%) | (MT) | ||
| Gandhamardan | -10 | 60-62 | 1,000 | 910 | 1100 | 1300 | +200 | 18% | 150,000 |
| Kurmitar (Koira) | -10 | 62-60 | 1,000 | 800 | 850 | 1150 | +300 | 35% | 200,000 |
| Daitari | -10 | 64-62 | 1,900 | 1,900 | 2080 | 2400 | +320 | 15% | 115,000 |
| Total | 465,000 | ||||||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
Odisha based merchant miners had raised iron ore prices by INR 600-700/MT in August amid a sharp hike in pellet prices on increased realizations in exports.
OMC in its previous iron ore fines e-auction conducted in July increased the base prices for the material being offered by INR 50-190/MT.
According to the recent update on OMC website, the company has witnessed production at 7.92 MnT in FY’18, up 24% Y-o-Y as against 6.37 MnT in FY’17. OMC contributes around 8-10% of total state’s iron ore production. OMC’s iron ore production is witnessing increase post increased output from its Gandhamardhan mines.
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