Odisha Mining Corporation (OMC) – a state-owned miner is to conduct next e-auction for 580,000 MT iron ore fines on 07th Mar’19. 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.
Compared to the previous fines e-auction held on 5th Jan’19, the base price for material from Gandhamardan mines remains unchanged at INR 1,200/MT. However, the base prices for material from Koira mines increased by INR 50/MT to INR 1,100/MT and for Daitari mines prices increased by INR 100/MT to INR 2,400/MT.
The base price when compared to bid price of last e-auction, for Gandhamardan and Koira mines remained stable. However, for Daitari mines, base price increased against bids received in previous fines e-auction.
Price comparison of OMC iron ore e-auctions-
| Mines | Size | Fe (%) | Base Price as on 05th Nov’18 | Base Price as on 05th Jan’19 | Bid price as on 05th Jan’19 | Base Price as on 07th Mar’19 | Quantity Booked |
| (mm) | (INR/MT) | (INR/MT) | (INR/MT) | (INR/MT) | (MT) | ||
| Gandhamardan | -10 | 60-62 | 1,300 | 1,200 | 1,200 | 1,200 | 150,000 |
| Kurmitar (Koira) | -10 | 62-60 | 1,150 | 1,050 | 1,100-1,150 | 1,100 | 250,000 |
| Daitari | -10 | 64-62 | 2,400 | 2,300 | 2,300-2,350 | 2,400 | 180,000 |
| Total | 580,000 | ||||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
As per data maintained with SteelMint, OMC iron ore production for the Dec’18 increased by 10% to 1.03 MnT as against 0.94 MnT a month ago. In FY18, the miner recorded production of 7.92 MnT. The miner is planning to increase iron ore production in the coming years from its mines.
Odisha based major merchant iron ore miners increased discounts on bulk quantity purchase against their official offer. Odisha merchant miners have twice raised iron ore prices in the month of Feb’19. Towards the beginning of Feb’19 they raised offers by INR 200-300/MT and again by INR 400-600/MT.
However, many merchant miners in Odisha have utilized their EC limits for the year and are not seen actively offering material in the market, facilitating price hike by other miners.
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