SteelMint: Odisha iron ore lump prices increase post OMC auctions, fines flat

Iron ore trade in Odisha has gained momentum following the active response received in the recent auctions by Odisha Mining Corporation (OMC) and SAIL.

SteelMint’s weekly Odisha iron ore fines index (Fe 62%) has remained stable w-o-w at INR 5,900/t ex-mines. However, prices for 5-18mm (Fe 63%) increased by INR 10,250/t. Limited availability of high-grade material (Fe 62-63%) amidst a few companies having exhausted their ECs as well as high bids in the OMC auction nudged miners to hold offers high.

Rationale:

• T1-  Two deals of OMC were considered from Guali and Daitari for a total of 44,000 t of fines (Fe 62-64%) at INR 5,500-5,650/t (ex-mine price, including royalty, DMF and NMET) under the calculation for the Fe 62% fines index and given 50% weightage. Rest of the deals were not taken for consideration.
• T2- SteelMint received fourteen (14) offers and indicative prices under T2 trades in this publishing window. Eleven (11) were taken into consideration and given 50% weightage. To check SteelMint’s iron ore assessment, pricing methodology, and specification documents Click here

Over 600,000 t of iron ore lump booked in OMC auction: OMC had scheduled an iron ore lump auction for 16 Feb in which the entire quantity of 627,000 t was booked. The auction received bids higher by INR 450-1,550/t as against the previous auction. 

Odisha iron ore prices:

Highlights from other states:

SAIL iron ore auction from Chhattisgarh receives weak response: SAIL conducted an auction for 40,000 t of iron ore concentrates (Fe 52.52%-64.08%- indicative) from its Dalli, Rajhara mines in Chhattisgarh on 17 Jan. Out of the total offered quantity, about 12,000 t (Fe 64.08%) received bids at INR 5,200/t (loaded, including royalty, DMF, NMET and additional premium).

Bids increase at Karnataka iron ore auction by private miners: Bids increased at the iron ore e-auction conducted by private miners in Karnataka on 15 Feb. The auction fetched bids for 503,356 t. JSW Steel was the largest buyer at 227,000 t followed by Janki Corp Limited at 48,356 t. Bids for iron ore lumps (Fe 61.46%) offered by the Karnataka State Minerals Corporation Ltd. increased to INR 3,284/t as against INR 3,263/t at the previous auction on 28 Jan.