SteelMint’s weekly index for Odisha iron ore fines (Fe 62%) remained stable at INR 9,300/t (ex-mines, including Royalty, DMF & NMET). Odisha-based major merchant iron ore miners have kept the offers firm this week. Market sources highlighted limited trades this week due to volatile market sentiments and decline in sponge prices.
Key highlights:
- Sarda Mines’ rights to the Thakurani-B iron ore deposit expires on 13 August 2021, following which the 947.046 ha area in Keonjhar district will be put up for auction, says a Odisha government order.
- Odisha government’s Directorate of Mines has given iron ore miner Serajuddin & Co. seven days’ time to clarify the reason for reporting low ex-mines prices (EMPs) of iron ore, SteelMint learnt from government sources. The Directorate is of the view that the miner is deliberately ‘under-reporting’ the EMPs which could affect the average sales prices.
- The Odisha government has issued instructions to the Directorate of Mines to suspend transit permit for dispatch of all merchant sales of iron ore dumps and tailings by state-owned steel producer SAIL. Ore dispatches for captive consumption, however, can continue unabated. Deviation in SAIL’s mining operations for dumps allowed under the approved mining scheme is cited as a major reason.
Recent trades & rationale:
- No confirmed deal was reported this week for T1 trade therefore kept the 0% weightage.
- SteelMint has also received fourteen (14) offers, indicative prices under T2 trade in this publishing window and all were taken into consideration and given 100% weightage. To see SteelMint’s iron ore assessments, pricing methodology and specification documents Click here
Market participants highlighted limited buying interest in revised offers for lump (5-18mm) at INR 12,500-12,700/t exw. An Odisha based trader has booked around 1,000 t iron ore lumps (5-18mm, Fe 63%) at INR 11,100/t (ex-mines, including Royalty, DMF and NMET) towards the end of last week.
Odisha iron ore prices:
Chhattisgarh:
- Steel Authority of India Ltd (SAIL) conducted an auction yesterday for 84,000 t iron ore fines from its Dalli and Rajhara mines in Chhattisgarh. Of the total allotted quantity, 28,000 t (Fe 60.09%) from the Rajhara mine received bids at INR 6,760/t, SteelMint learnt from sources. Another 28,000 t (Fe 55.28%) from the Dalli mine received bids at INR 2,700/t (loaded, including royalty, DMF and NMET). According to market sources, SAIL had also offered 8,000 t iron ore tailings at the auction which received no response.
- NMDC’s iron ore prices have remained unchanged. Highlighting the difficulties faced by Chhattisgarh-based sponge iron plants in procuring iron ore, the Chhattisgarh Sponge Iron Manufacturers Association has pitched for increasing iron ore availability from PSU miner NMDC. NMDC (C.G) iron ore production and dispatches have been impacted as the mines are operating in two shifts instead of the usual three, sources informed SteelMint. As per SteelMint data, NMDC dispatched only 11 rakes of iron ore in the first week and 14 rakes in the second week of May’21 to state-based units.
Karnataka:
- In a recent Karnataka e-auction held on 18th May’21, out of the total quantity of 884,000 t put to auction, 764,000 t was booked. JSW Steel stood the largest buyer at 420,000 t. Iron ore fines Fe 57.5% lots offered by Vedanta received bids at INR 3,747/t as against INR 2,960/t in the last e-auction conducted on 4th May’21. Prices mentioned are basic.
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