State-run Odisha Mining Corporation (OMC) has scheduled an auction for iron ore fines and lump on 18 July, 2022. Around 1.14 million tonnes (mnt) of lump ore and 1.62 mnt of fines will be put up for auction.
The miner has decreased the base price for fines by up to INR 150/t. For lump, however, base prices have remained largely unchanged except for material from the Jilling mine for which the base price has been reduced by INR 400/t as against the price of the last auction held on 23 June.
Factors behind drop in base price
- NMDC cuts iron ore prices – India’s largest merchant iron ore mining company, NMDC, has slashed prices of lump ore by up to INR 600/t and fines by INR 500/t, effective 12 July.
- Steel mills lower capacity utilisation: Indian steel manufacturers have undertaken maintenance shutdowns/running under reduced capacities a couple of months ahead of schedule because of slow demand in both overseas and domestic markets. Thus, Indian crude steel production may drop 10-15% this month.
- Global iron ore prices fall by around $25/t m-o-m: Chinese spot iron ore fines Fe 62% prices closed at $109/t CNF China yesterday, lower by $25/t m-o-m. Prices have come down on growing fears of weakening demand for the raw material in China where multiple cities are enforcing fresh COVID-19 curbs. Combined iron ore inventory at major Chinese ports stood at 128.3 mnt on 7 July, increasing by 2.8 mnt as against 125.5 mnt a week ago, as per SteelHome data.
To know more about, Indian iron ore market outlook
Iron ore and pellets conference: SteelMint Events will be hosting the 5th Indian Iron Ore & Pellet Summit on 3-4 August, 2022 at The Lalit, New Delhi. The conference will discuss key issues being faced by the iron ore and pellets industry in India. The focus will be on market dynamics, policy-related changes, growth challenges and enablers, sustainability and decarbonisation goals, the way forward and many more talk points.
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