SteelMint’s weekly index for Odisha iron ore fines (Fe 62%) has remained unchanged this week at INR 5,150/t (ex-mines, including Royalty, DMF & NMET). Miners have kept offers largely stable. However, additional supplies from OMC may result in lowering offers in the near term, SteelMint understands.
In a confirmed trade reported this week from Steel Authority of India Ltd (SAIL) booked entire offered quantity of104,000 t iron ore fines (Fe 60.8%) at INR 2,250/t (loaded, excluding royalty) from its Barsua mines in Odisha.
Odisha’s state-owned miner- Odisha Mining Corporation (OMC) had scheduled an iron ore e-auction on 10th Mar’21 for 882,000 t iron ore fines. 86% of material (i.e about 767,000 t) put to auction was booked. The bids have fallen sharply up to INR 1,200/t against the last e-auction conducted on 7th Jan’21 in line with price drop seen in merchant market on improving supplies.
Prices mentioned are ex-mines, inclusive of Royalty, DMF & NMET
Also, in another trade recorded by SteelMint, an Odisha based merchant miner had sold around 100,000 t iron ore fines (Fe 60.5%) at INR 4,500/t (ex-mines, including Royalty, DMF & NMET) towards the end of last week.
The deals were not considered for T1 trade and hence kept the weightage nil in this index as they were not falling under the SteelMint methodology of price calculation
SteelMint has also received eleven (11) offers, indicative prices under T2 trade in this publishing window out of those nine (9) were taken into consideration and given 100% weightage. To see SteelMint’s iron ore assessments, pricing methodology and specification documents, Click here.
JSW Steel’s auction for 600,000 t iron ore fines canceled on limited response: According to the sources report to SteelMint, the auction was canceled owing to a dull response. Notably, the material put up for auction cannot be booked for export purposes. Earlier JSW Steel conducted an auction for 600,000 t low grade (Fe 55-58%) iron ore fines from its Jajang mines with the base price reduced by INR 400/t to of INR 1,100/t (inclusive of Royalty).
Odisha iron ore prices:
NMDC to auction 701,400 t iron ore from Chhattisgarh mines – India’s largest iron ore miner – National Mineral Development Corporation (NMDC) is going to conduct two iron ore auctions – 651,000 t from Bacheli mines and 50,400 t from Kirandul mines, Chhattisgarh. Both the auctions are scheduled for 17 Mar ’21.
Bids remain stable in recent NMDC’s Karnataka auction- NMDC recently conducted an iron ore e-auction on 10th Mar’21 from its Kumawaswamy mines. 116,000 t iron ore fines was booked out of a total 168,000 t put to auction. JSW Steel bought 100,000 t iron ore in the auction followed by BMM Ispat Limited at 12,000 t. Bids have remained unchanged against last e-auction conducted on 6th Mar’21. Bid price for iron ore fines (Fe 58.16%) stood at INR 2,871/t basic, excluding taxes.
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