SteelMint’s weekly Odisha iron ore fines (Fe 62%) index decreased marginally by INR 100/t to INR 6,100/t (ex-mines, including royalty, DMF and NMET). Merchant miners continue to float the same offers compared to last week and market participants are awaiting the outcome of OMC’s auction scheduled next week.
OMC has scheduled an e-auction for iron ore fines and lumps on 2 Nov’21. About 1.013 mn t of iron ore fines and 887,000 t of lumps will be put up for auction. For fines, the miner has reduced prices by up to INR 650/t, while for lumps the reserve price has remained unchanged as per OMC’s last auction on 1 Oct.
Confirmed deals:
SAIL conducted an auction for 136,000 t of iron ore fines (Fe 62.5%) from its Bolani mines in Odisha. The auction received bids for 12,000 t offered at INR 6,100/t and 124,000 t at INR 6,050/t (loaded on to wagon, including royalty, DMF, NMET and the additional amount mentioned in MMDR Amendment Act).
Rationale:
- The SAIL auction was factored into the price calculation as T1 trade. It was given 50% weightage in the index calculation for Fe 62% fines.
- SteelMint received ten (10) offers and indicative prices under T2 trade in this publishing window. Five (05) were taken into consideration and given 50% weightage. To check out SteelMint’s iron ore assessment, pricing methodology and specification documents Click here
Market highlights from Odisha:
- The High Court of Odisha is believed to have granted one month’s time to the ex-lessees of auctioned mines in the state to move out their material. The period starts from 15 Nov’21. According to sources, the interim order will partially benefit lessees like Serajuddin, Kalinga Mining Corporation, Ghanshyam Minerals and RP Sao whose leases expired in Mar’20.
Iron ore lump in demand at NMDC’s Chhattisgarh auction
NMDC conducted an auction on 27 Oct for 298,200 t of iron ore from the Kirandul and Bacheli mines in Chhattisgarh. The auction received good response for lumps and the entire quantity was sold, sources told SteelMint. Bids for DR CLO increased by INR 700/t, while those for Baila lump remained at the base price. The rest of the lots for fines remained unsold.
NMDC books 150,000 t at Kumaraswamy auction
NMDC conducted an iron ore e-auction on 28 Oct from its Kumaraswamy mines at which 150,000 t was booked out of a total of 171,000 t offered.
- JSW Steel Ltd. emerged as the largest buyer at 108,000 t followed by NMDC Ltd. at 20,000 t.
- The iron ore lump (Fe 64.47%) lot was booked at INR 5,284/t (basic, taxes extra).
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