The miner has slashed base price upto INR 350/MT for upcoming fines e-auction of 384,500 MT.
Odisha Mining Corporation has scheduled its next iron ore fines e-auction on 12th Sep’19, base prices decreased upto INR 350/MT against the base price and bid price of previous e-auction conducted on 12th July’19.
The auction is conducted for 384,500 MT iron ore fines and 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.
The miner has reduced base prices for material offered from Koira mines by INR 200/MT to INR 1,050/MT, for Gandhamardan mines by INR 250/MT and for Daitari by INR 350/MT.
The drop in semi finished and finished steel prices have put iron ore prices under pressure. Hence, few Odisha miners have reduced iron ore prices in Aug’19.
In the last fines e-auction held on 12th July’19, the miner received flat bids.
Price comparison of OMC iron ore e-auctions-
| Mines | Size | Fe (%) | Base Price as on 12th Jul’19 | Bid Price as on 12th july’19 | Base Price as on 12th Sep’19 | Quantity Offered |
| (mm) | (INR/MT) | (INR/MT) | (INR/MT) | (MT) | ||
| Gandhamardan | -10 | 60-62 | 1,350 | 1,350 | 1,100 | 180,000 |
| Kurmitar (Koira) | -10 | 62-60 | 1,250 | 1,250 | 1,050 | 4,500 |
| Daitari | -10 | 64-62 | 2,450 | 2,450 | 2,100 | 200,000 |
| Total | 384,500 | |||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
OMC iron ore production for the month of June’19 was recorded at 1.05 MnT, up 30% as against 0.81 MnT in May’19.
OMC is all set with iron ore production ramp-up plans for coming years to make up for expected supply disruption after March 2020 following lease expiry. OMC is planning to achieve 20 MnT iron ore output by FY21.
EC limit at Daitari mines is proposed to be increased to 6 MnT p.a. from current EC of 3 MnT pa. On similar lines, EC limit at OMC’s Kurmitar mines is proposed to be increased from current 2.4 MnT p.a to 6 MnT p.a.
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