Orissa Mining Corporation (OMC) tendered for Iron ore fines, which was due on 24 May, 2014, received mixed response. Prices will be valid till 31 Aug, 2014.
Orissa Mining Corporation (OMC), a state-owned miner which had floated a tender for sale of 128,100 MT Iron ore fines, has received mixed response. On one hand, Steel mills have placed higher bids and on the other, bids were quite low from Indian exporters owing to falling prices in global market.
Some of the active participants were MSP Sponge, Shark Mines, Dolphin Resources, Kalinga Allied, Liberty Marine, Bagadiya Brothers, Sagar Enterprises, Umang Udyog, SM Niryat, Electro Steel, Kashvi Power and Steelex.
Sources who participated in this tender mentioned that 62% Fe fines fetched higher bids, whereas low grade fines (57% Fe) received lower bids compared to last tender prices.
OMC produced around 2.1 MnT of Iron ore in FY14, out of which almost 90% ore is reserved for state based mills like Bhushan, Visa & Maithan. Another 10% is being tendered, which is for both inside & outside state mills.
OMC Iron Ore Fines Prices Valid till 31 Aug, 2014
|
Mines Name |
Grade |
Qty Offered |
Bidder |
H1 Bids* |
Last Tender Prices* |
|
Gandhmardhan |
62% |
50,000 |
MSP Sponge |
1,921 |
1,906 |
|
Gandhmardhan |
57% |
30,000 |
Kashvi Power |
8,00 |
1,330 |
|
Barbil |
62% |
10,000 |
Electro Steel |
2,500 |
1,520 |
*Prices in INR/MT on Ex-Mines basis; including Royalty
Recently, Iron ore prices had moved up in Odisha owing to temporary suspension of 26 mines running under deemed renewal, which will impact around 35-36 MnT of Iron ore production on an annual basis.
Current prices of 63% Fe fines would around INR 2,500-2,600/MT on Ex-Mines basis in Barbil, Odisha (including royalty) .
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