State-owned miner Odisha Mining Corp (OMC) had scheduled an e-auction for iron ore fines and lumps today (17 Dec’21). Around 340,000 t of iron ore lumps and 687,000 mn t of fines were put up for auction from OMC’s mines. The miner had cut the base price for fines by up to INR 650/t and that of lumps by up to INR 500/t against the last auction on 3 Dec’21.
Fines auction receives good response
The miner had scheduled the iron ore fines auction today. Out of the total 687,000 mn t of material put to auction, 98% (676,000 t) received bids. Market sources highlighted that the recent hike in domestic pellet offers must have resulted in active buying interest in fines. Notably, SteelMint’s pellet price assessment for Barbil increased by INR 1,000/t since the beginning of the month to INR 9,000/t loaded to wagons on 14 Dec’21.
Price includes royalty, DMF and NMEFT and additional amount @ 150% of royalty payable. (as per the Gazatte notification dt. 28.03.2021)
Lumps auction fetches subdued response On the other hand, out of the total 340,000 t of lumps put to auction, only 48% (164,000 t) received bids. The entire lot received flat bids which were in line with the base price. Notably, bid prices have come down by INR 440-500/t against bid prices of the previous auction held at the beginning of December.
SteelMint’s Odisha iron ore lumps (5-18mm, Fe 63%) index fell to INR 8,350/t ex-mines on 11 Dec’21, a decrease of INR 1,600/t m-o-m.
With 13.3 mn t of iron ore production in FY’21, OMC had emerged as the leading merchant miner in Odisha.
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