SteelMint’s weekly index for Odisha iron ore fines (Fe 62%) is assessed at INR 9,400/t (ex-mines, including royalty, DMF and NMET). The index increased by around INR 250/t against the last assessment. Prevailing supply constraints in Odisha’s merchant iron ore market and evacuation issues faced by lessees are believed to have pushed up prices.
Odisha-based merchant miner Essel Mining raised offers for iron ore fines further by INR 500/t earlier this week to INR 9,600/t for Fe 62% fines. However, lump prices remain unchanged. Likewise, Rungta Sons Pvt Ltd increased iron ore fines (Fe 62%) prices by up to INR 500/t ($7) to INR 9,800, sources informed SteelMint.
Recent trade and rationale:
- Steel Authority of India Ltd (SAIL) conducted an auction on 21 Jun for 136,000 t of iron ore fines (Fe 62.5%) from its Bolani iron ore mine in Odisha. Out of the total quantity on offer, the auction received bids for 80,000 t of material at INR 9,530/t. The remaining 56,000 t was booked at INR 9,540/t (loaded on to wagon, including royalty, DMF, NMET and additional amount as per MMDR Amendment Act). SteelMint has adjusted prices with the index grade and considered it under T1 trade for 50% weightage in the index calculation for Fe 62% fines.
- SteelMint has received ten (10) offers, indicative prices under T2 trade in this publishing window and nine (09) were taken into consideration and given another 50% 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. Iron ore lump availability in the market is still a challenge .
Odisha iron ore offers:
Chhattisgarh:
Steel Authority of India Ltd (SAIL) conducted an auction on 25 Jun for 56,000 t of iron ore fines and concentrates from its Dalli mines in Chhattisgarh. Bids were received for 28,000 t of concentrates (Fe 64.8%) at around INR 8,120/t and the remaining lot of 28,000 t fines (Fe 55.02%) fetched bids at INR 2,700/t (loaded, including royalty, DMF and NMET), according to market sources.
NMDC’s iron ore auction receives active participation: An e-auction was conducted by leading merchant iron ore miner NMDC on 24 Jun for 63,000 t of iron ore fines (Fe 61%) from its Bacheli mines in Chhattisgarh. According to sources, the entire quantity received bids at INR 5,968-5,978/t (FoR Bacheli, excluding royalty, DMF and NMET) against the set base price of INR 5,558/t.
An e-auction on 23 June’21 for 105,000t of iron ore slimes (Fe 57/58%) was held from its Bacheli mines in Chhattisgarh. According to sources, the entire quantity received bids at INR 3,020/t (basic, excluding royalty, DMF and NMET) against the set base price of INR 2,800/t.
Karnataka e-auction receives participation from eastern India-based mill-
In a recent Karnataka e-auction held on 24 Jun, out of the total quantity of 425,000 t put to auction, 314,000 t was booked. Orissa Metaliks was the largest buyer at 72,000 t. Chowgule & Company Pvt Ltd booked 8,000 t Fe 65% fines at INR 6,940/t. Ramanadurga iron ore lump Fe 66% received bids at INR 7,659/t, stable as against the last e-auction conducted on 15 Jun.
Earlier, West Bengal-based Orissa Metaliks procured 32,000 t of iron ore fines (Fe 63.1%) at INR 5,516/t (basic, excluding taxes). NMDC had conducted an iron ore e-auction on 22 Jun from its Kumaraswamy mines in Karnataka.
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