SteelMint’s weekly index for Odisha iron ore fines (Fe 62%) was assessed as stable this week at INR 9,150/t (ex-mines, including royalty, DMF and NMET). All merchant miners in Odisha kept iron ore offers stable; however trading remained limited.
State PSU miner Odisha Mining Corporation (OMC) had scheduled an iron ore e-auction on 11 Jun’21 from its Daitari mines for 24,000 t of iron ore fines (Fe 62-64%). The entire material received bids at INR 8,650-8,700/t against the base price set at INR 7,800/t, ex-mines (including royalty, DMF and NMET), as per SteelMint reports.
Highlights:
- Although the Odisha High Court had allowed Sarda Mines Private Ltd (SMPL) to continue production from its Thakurani B block in Odisha, the state government is still weighing options whether to approach the Supreme Court on the issue. Odisha government sources told SteelMint that the court order was received by the government recently and it is examining whether to allow operations or approach higher court. Meanwhile, production and dispatches remain suspended from the mine.
- Market sources expect Serajuddin & Co. to open fresh offers for merchant sales early next week. The market expects a hike.
Recent trade and rationale:
- A confirmed deal was reported to SteelMint this week from OMC for 24,000 t fines (Fe 62%). However, that has not been considered for price calculation under T1 trade, and therefore, given 0% weightage.
- SteelMint has also received nine (09) offers, indicative prices under T2 trade in this publishing window and eight (08) 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 that offers for iron ore lump (5-18mm, Fe 63%) are at INR 14,000-14,700/t, exw. The market apprehends that a shortage in availability still persists.
Odisha iron ore prices:
Chhattisgarh:
- NMDC rolls over prices – India’s largest merchant iron ore miner NMDC has kept prices unchanged for Jun deliveries, SteelMint learnt from sources. The price announcement may give some relief to Indian steel mills and sponge players who were worried about the sharp hike in Odisha iron ore prices.
- SAIL books 4,000 t low-grade fines at Chhattisgarh auction: Steel Authority of India Ltd (SAIL) conducted an auction on 11 Jun for 40,000 t of iron ore fines from its Dalli and Rajhara mines in Chhattisgarh. Bids were received for only 4,000 t at INR 3,580/t (loaded, including Royalty, DMF and NMET), according to information provided by market sources. The material put to auction was low-grade iron ore (Fe 55%, 57.8% and 51.1%).
Karnataka:
- NMDC rolls over prices for Jun’21 Karnataka e-auction: NMDC rolled over iron ore prices at the advanced auction from Kumaraswamy mines, as per SteelMint reports. The floor price for fines (Fe 62%) was at INR 5,372/t. For Fe 63% grade, the base price was at INR 5,628/t (basic, excluding royalty, DMF and NMET). The base price of iron ore lump (Fe 64%) was at INR 7,355/t (basic, minus royalty, DMF and NMET).
- Bids fall slightly in recent e-auction by private miner : At the Karnataka e-auction held on 9 Jun, out of 533,000 t put up for sale, 176,000 t was booked. JSW Steel was the largest buyer at 92,000 t. Vedanta iron ore fines (Fe 59.25%) received bids at INR 6,765-6775/t against INR 6,845-6,855/t in the previous e-auction on 8 Jun.
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