SteelMint’s weekly Odisha iron ore fines (Fe 62%) index decreased by INR 200/t to INR 9,200/t (ex-mines, including royalty, DMF and NMET). The index slipped around INR 200/t as against the assessment conducted last week.
State-run Odisha Mining Corporation (OMC) held an auction for 689,000 t of iron ore fines this week, having had reduced the total material on offer from 1.06 mn t with an increased base price of INR 2,550/t compared with the last e-auction on 8 Jul’21.
The auction received weak response, with only 117,000 t getting booked at the base price. The auction for 1.06 mn t on 8 Jul was annulled on account of unexpected softening of bids.
Recent trade and rationale:
- One deal for 18,000 t of OMC’s Daitari lot was considered out of three deals for this week’s index and adjusted after grade difference and considered under T1 trade, being accorded 50% weightage in the index calculation for Fe 62% fines.
- SteelMint received ten (10) offers, indicative prices under T2 trade in this publishing window of which eight (09) 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 14,250/t (ex-mines, inclusive of royalty, DMF and NMET). However, no deal was heard this week.
Bids for iron ore lumps rise sharply at NMDC’s Chhattisgarh auction – India’s leading iron ore miner, NMDC, conducted an auction on 20 Jul’21. In the lots auctioned from Bacheli, the auction received active participation with the entire quantity getting booked, except the ROM lot of 16,800 t. Bids for DR-CLO moved up by around INR 1,560/t over the set base price. The entire quantity of 126,000 t of iron ore fines was booked.
Also, the 50,400 t of iron ore auction from the company’s Kirandul mines in Chhattisgarh received active participation with the entire quantity getting booked. Bids for Baila iron ore lump moved up by INR 2,060/t over the set base price. Bids for fines moved up by INR 620/t over the base price.
Jharkhand iron ore auction postponed with JSMDC’s sky-high bid: Jharkhand State Mineral Development Corporation (JSMDC) seems to be hell-bent on playing the lead role in the keenly-watched auction of the precious Ajitaburi iron ore deposit in the state.
Eight out of 24 companies qualified as technical bidders. State-owned JSMDC, however, left everyone behind with an astounding initial price offer of 122% leaving one of the country’s biggest private miners, Rungta Mines, trailing far behind at 92% and DD Steel and Power at 92.4%.
Bids inch down at Karnataka e-auction by private miners on 16 Jul:
- The auction fetched bids for 157,000 t of iron ore (92,000 fines and 65,000 t lumps) out of the total quantity of 165,000 t put under the hammer.
- JSW Steel Ltd was the largest buyer at 55,000 t.
- Iron ore lumps (Fe 58.75%) sold by Vedanta received bids at INR 5,989/t as against INR 6,144/t at the previous auction on 6 Jul.
SC strikes down Goa and Vedanta’s petition to save renewals of 88 iron ore mines: The Supreme Court has dismissed petitions filed by Vedanta and the Goa government to review the order that cancelled the renewal of 88 iron ore leases in Goa in 2018.
The order, authored by the Chief Justice DY Chandrachud, pointed out that “in accordance with Rule 2 of Order XLVII of the Supreme Court Rules, 2013, an application for review of a judgement has to be filed within 30 days of the date of the judgement or order that is sought to be reviewed.”
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