Odisha Mining Corporation has scheduled its next iron ore lump e-auction on 03 Oct’18, base prices increased upto INR 800/MT against the previous e-auction conducted on 03 Aug’18.
Odisha Mining Corporation (OMC) – a state-owned miner is to conduct next e-auction for 445,000 MT iron ore CLO and lump on 03 Oct’18. The material put under the hammer is from Gandhamardan, Daitari and Koira mines. No traders shall be allowed to take part in the e-auction.
Out of the total quantity, 395,000 MT is DR-CLO and remaining 50,000 MT is lump ore. The base price for lump offered from Daitari mines is increased by INR 700/MT (18%) and for Koira mines base price is up by INR 800/MT (21%) against the last lump e-auction held in Aug’18.
Odisha based merchant miners had increased prices by INR 600-700/MT in August and again announced another hike of INR 500/MT in 1st week of September which made Odisha iron ore prices to hover close to 6 years high. However, miners are offering discounts to buyers of around INR 300-400/MT varying as per the quantity of purchase. Amid less buying interest and decline in semi-finished and domestic pellet prices, miners are offering discounts.
Price comparison of OMC iron ore e-auctions-
| Mines | Size (mm) | Fe (%) | Base Price as on 04 Apr’18 | Base Price as on 05 Jun’18 | Base Price as on 03 Aug’18 | Bid Price as on 03 Aug’18 | Base Price as on 03 Oct’18 | Quantity (MT) |
| Gandhamardan | 10-40 | 62% | 2,600 | 3,500 | 3,500 | 3,500 | 4,100 | 200,000 |
| 10-180 | 65% | 2,200 | 2,500 | 2,700 | 2,900-2,950 | 3,400 | 50,000 | |
| Kurmitar (Koira) | 10-40 | 62% | 3,200 | 3,600 | 3,800 | 3,850-3,900 | 4,600 | 90,000 |
| Daitari | 10-40 | 62% | 3,200 | 3,400 | 3,800 | 3,950-4,000 | 4500 | 105,000 |
| Total | 445,000 | |||||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
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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