SteelMint’s benchmark Odisha iron ore lump index increased by INR 100/t this week in trades reported to SteelMint. However, fines index remained largely range-bound this week. Market participants are waiting for NMDC’s price revision for Jan’21. Odisha Mining Corporation (OMC) has scheduled iron ore fines auction for 0.85 mn t on 7th Jan’21.
SteelMint’s index for Odisha iron ore fines (Fe 62%) index stands at INR 6,150/t (ex-mines, including Royalty, DMF & NMET).
- In a confirmed trade heard, an Odisha based private merchant mine booked iron ore fines (Fe 62%) at INR 6,100/t (ex-mines, including Royalty, DMF & NMET).
- This has been considered as confirmed trade for index calculation after normalizing for grade and tax terms. Apart from this, SteelMint received seven offers, indicative prices in this publishing window. To see SteelMint’s iron ore assessments, pricing methodology and specification documents, Click here
Odisha Mining Corporation (OMC) has scheduled the next iron ore fines e-auction for 851,100 t on 7th Jan’21. The company is expected to announce the base price of the auction on 4th Jan’21.
Odisha – India’s largest iron ore producing state recorded production of 10.35 mn t in Nov’20, up 10%, as against 9.42 mn t in Oct’20. Notably, KN Ram mine won by Narbheram Power & Steel began production in Nov ’20. The mine has EC limit of 3.5 mn t. Also output from G S Mishra & Sons increased in Nov’20. Jagat Janani also initiated production in Nov’20.
Chhattisgarh-: Govt owned SAIL conducted an auction on 31 Dec’20 from its Dalli mines in Chhattisgarh for 28,000t iron ore concentrate (Fe 65.8%) for 28,000 t. Entire quantity put under hammer received bids at INR 7,640/t (loaded into rakes and including royalty). This is for the first time that SAIL has auctioned a lot of over Fe 65% fines since auctions began in Feb’20.
- NMDC conducted two iron ore auctions on 30 Dec’20 for around 100,800 t from its Bacheli mines and 25,200 t from its Kirandul mines, Chhattisgarh. Offered material comprised of 71,400t fines, 16,800t ROM, 29,400t DR CLO and 8,400t lump. Bids for DR CLO increased sharply by around INR 3,700/t and fines by INR 200/t above the set base price, sources reported SteelMint.
- NMDC’s iron ore production for the month of Dec’20 stood at 3.86 mn t against the production level of 3.13 mn t in Dec’19, thereby registering a growth of 23.3%. Production volume has increased by 16% in Dec’20 compared with Nov’20.
Karnataka -: The recent Karnataka e-auction conducted on 31st Dec’20 by private miners received increase in bids. Bids for iron ore lumps (Fe 59.25%) offered by Vedanta ltd. increased to INR 5,987/t against bid of INR 5,883/t in last e-auction conducted on 29th Dec’20. The auction fetched bids for 331,000 t (212,000 fines and 119,000 lumps) out of the total quantity of 370,000 t put under hammer. JSW Steel Ltd stood the largest buyer at 191,000 t.
Jharkhand – SAIL iron ore auctions from Gua and Meghataburu mines scheduled on 28th and 29th Dec’20 have been postponed to 13th Jan’21.
Imports- Imported offers for South African lump to India have come down by $5-10/t w-o-w, SteelMint learned from its sources. The current assessment stands at around $170-175/t, CNF Kandla which were hovering at $180/t, CFR in the last week. The fall is due to a fall in the global iron ore fines index which fell to $159/t, CNF China, down by $15-20 w-o-w. Also, the most traded DCE May’21 iron ore futures closed at RMB 996/t yesterday as against RMB 1,036/t, a week ago.
India iron ore prices-:
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