SteelMint’s weekly index for Odisha iron ore fines (Fe 62%) stands at INR 9,400/t (ex-mines, including royalty, DMF and NMET). The index increased by around INR 300/t compared with the assessment conducted last week.
State PSU miner Odisha Mining Corporation (OMC) has decided to re-conduct the 1.06 mn t of iron ore fines e-auction held on 8 Jul’21, as per latest reports available with SteelMint. The leading merchant iron ore miner has annulled the e-auction on account of unexpected softening of bids.
Recent trade and rationale:
- One deal for 100,000 t was concluded this week at INR 9,300/t ex-mines and considered under T1 trade, being accorded 50% weightage in the index calculation for Fe 62% fines.
- The e-auction scheduled on 14 Jul’21 by Visa special Steel Ltd for 20,000 t of iron ore fines got cancelled, sources informed SteelMint. The auction was scheduled for iron ore fines (Fe 62%) from the company’s Kalinganagar plant in Odisha’s Jajpur district. The auction was cancelled due to one large lot of 20,000 t being put on offer that limited the participation of small buyers.
- SteelMint received nine (09) offers, indicative prices under T2 trade in this publishing window of which eight (08) were taken into consideration and given 50% weightage. To check out SteelMint’s iron ore assessments, pricing methodology and specification documents Click here
SteelMint’s iron ore lump (5-18mm, Fe 63%) index stands stable at INR 14,350/t ex-mines, inclusive of royalty, DMF and NMET. An eastern India-based trader has concluded a deal for three rakes (around 12,000 t) of lumps (5-18 mm, Fe 61%) at around INR 11,000/t (ex-mines, including royalty, DMF and NMET) this week.
Key market updates from Odisha –
- The Ministry of Environment, Forest and Climate Change has accorded approval for enhancing the environment clearance (EC) limit of state-run Odisha Mining Corporation’s (OMC) Daitari iron ore mine from 3 mn t to 6 mn t per annum, as per SteelMint reports. The iron ore mine in Odisha’s Keonjhar and Jajpur district has a total mining lease (ML) of 1018.3085 ha.
- JSW Steel may surrender two iron ore mines in Odisha, SteelMint has learnt. Sources confirmed that the steelmaker may give up its right to Jajang and Ganua iron ore mines, as it feels “frustrated with legacy issues” of the deposits for which it had committed steep premiums at the Odisha auctions last year.
NMDC to auction 210,000 t iron ore from Chhattisgarh – State-run iron ore miner National Mineral Development Corporation (NMDC) will conduct an auction for 210,000 t of iron ore on 20 Jul’21 from its Bacheli and Kirandul mines in Chhattisgarh. The miner has reduced iron ore prices for Jul deliveries by INR 200-230/t ($3).
Jharkhand govt to auction 100,000 t of old iron ore stocks – The Jharkhand State Mineral Development Corporation (JSMDC) will conduct an auction for around 100,000 t of various grades of iron ore fines/lumps on 6 Aug’21 from its Thakurani Mines in the Chaibasa region of West Singhbhum district of the state. The state government has recently announced that it would start auctioning already-mined iron ore stocks lying at mine sites in the Saranda forest region of the mineral-rich state.
NMDC lowers base price for Karnataka e-auctions – India’s largest merchant miner, NMDC, has decreased iron ore base prices for auction from the Kumarswamy mines, SteelMint learnt from sources. Prices have fallen by around INR 200/t for both lump and fines.
NMDC Kumarswamy mines conducted an e-auction on 13 Jul’21. 151,000 t of iron ore was booked out of the total quantity of 240,000 t put to auction. JSW Steel was the largest buyer at 76,000 t of iron ore fines. Orissa Metaliks Pvt Ltd booked 4,000 t of iron ore lumps (Fe 62.56%) at INR 6,533/t.
An iron ore lump (Fe 60.06%) lot was booked at INR 5,798/t (basic, taxes extra), as against the booking price at the last auction on 1 Jul, which stood at INR 5,963/t.
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