SteelMint’s benchmark Odisha iron ore fines index softened further this week by INR 100/t following price cut by Essel mining and lower bids fetched in recent SAIL’s Bolani auction.
SteelMint’s index for Odisha iron ore fines (Fe 62%) index stands at INR 6,000/t (ex-mines, including Royalty, DMF & NMET).
- SAIL conducted an auction at Bolani mines for iron ore fines Fe 62.5% on 15 Jan’21. Entire quantity of 136,000 t received bids at INR 4,960-5,000/t (loaded into rakes and excluding royalty).
- SteelMint has also received ten offers, indicative prices in this publishing window out of those nine taken into consideration. To see SteelMint’s iron ore assessments, pricing methodology and specification documents, , Click here
- Beside fines deal, one of the Odisha based trader has booked two rakes (around 8,000 t) of iron ore lumps (5-18 mm, Fe 63%) this week at INR 9,000/t (ex-mines, including royalty DMF and NMET).
- Odisha’s Essel Mining has cut iron ore lump prices by INR 400/t and that of fines by around INR 300-400/t w.e.f 16th Jan’21, credible sources reported to SteelMint. Notably, the miner has cut offers after a gap of eight months as its last price cut was seen in May’20.
- The union cabinet has approved mining reforms (The amendments, now to be laid before Parliament in the Budget session), first proposed in mid-2020 paving the way for the auction of nearly 500 old mineral bearing areas. Key highlights include – Captive mines will be allowed to sell up to 50% of the minerals excavated during the current year and will be subject to a premium which will be decided by the central govt. Also, a National Mineral Index (NMI) will replace the current system of arriving at an Average Sale Price (ASP) based on which various statutory payments are charged for future auctions.
Chhattisgarh-: Steel Authority of India Ltd (SAIL) conducted an auction from its Rajhara mines on 13th Jan for 56,000 t, the auction received bids for 28,000 t (one lot) iron ore fines (60.47%) at INR 4,220/t (loaded into rakes and including royalty). However, the auction for another lot for 28,000 t iron ore fines (Fe 56.33%) received no response.
Karnataka -: Karnataka iron ore e-auction sales volume decreased by 9% y-o-y in CY’20. The allotted iron ore quantity was 28.34 mn t in CY’20 compared to 31.16 mn tn CY’19, as per data maintained with SteelMint.
In recent Karnataka iron ore e-auction by private miners held on 7th Jan’21, out of the total quantity of 709,955 t put to auction 482,000 t received bids. JSW Steel Ltd stood the largest buyer at 298,000 t. Bids in the auction increased upto INR 1,360/t against the set base price.
India iron ore prices-:
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