SteelMint’s weekly Odisha iron ore fines index (Fe 62%) remained stable w-o-w at INR 3,500/t ex-mines. Most of the miners are holding the same offer and are waiting for OMC and other private miners’ auctions which are scheduled to take place next week.
However, State-run Odisha Mining Corporation (OMC) has decreased the base price for fines by up to INR 150/t. For lumps, however, the base prices have remained largely unchanged except for material from the Jilling mine for which the same has been reduced by INR 400/t as against the last auction held on 23 June.
The market did not see trades taking place actively. Offers of iron ore lumps remained limited amidst weather constraints. On the other side, SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, increased by INR 300/t to INR 8,800/tonne (t) DAP Raipur this week compared to the last assessment on 9 July.
Rationale:
- T1- No confirmed deal for high grade ore (Fe 62%) was heard this week. Therefore, nil weightage was given in this index.
- T2- SteelMint received nine (09) offers and indicative prices under T2 trade deals in this publishing window out of which eight (08) were taken into consideration and given 100% weightage. To check SteelMint’s iron ore assessment, pricing methodology and specification documents Click here.
State-owned Industrial Development Corporation of Odisha Ltd (IDCOL) had scheduled an auction on 14 July 2022 for sale of iron ore lumps from its Roida ‘C’ iron and manganese mines in Odisha’s Keonjhar district. According to market sources, the entire quantity of 21,620 t of lumps (5-18mm, Fe62-65%) was booked at around INR 7,250/t against the base price of INR 6,500/t (including royalty, DMF and NMET).
Odisha iron ore prices:
Highlights from other states:
- NMDC cuts base prices for Karnataka iron ore e-auction: NMDC has reduced base prices for iron ore fines by up to INR 300/t and for lumps by up to INR 100/t for today’s auction from the Donimalai mines. The current floor price of fines (Fe 62%) is INR 2,122/t, while Fe 63% fines prices are at INR 2,215/t (basic, excluding royalty). The base price of lumps (Fe 64%) stands at INR 2,660/t (basic, excluding royalty). NMDC has scheduled two iron ore auctions from Karnataka. The first is for 600,000 t of both fines and lump ore (Fe59-61%) from the Donimalai mines, while the second is for 680,000 t of fines and lumps (Fe56.43-65.40%) from the Kumaraswamy mines. Both are scheduled for 16 July 2022.
- Maharashtra-based miner raises iron ore lump offers by INR 1,000/t ($13/t): A Maharashtra-based iron ore miner has increased lump offers by INR 1,000/t. Offers for lumps (5-18mm, Fe 63%) were recorded at INR 8,000/t FOR Raipur as against INR 7,000/t FOR Raipur. Tight material availability and upcoming monsoons may keep iron ore offers higher.
- NMDC Chhattisgarh cuts iron ore prices by up to 15% for July: India’s largest merchant iron ore mining company, NMDC, slashed prices of lump ore by up to INR 600/t and fines by INR 500/t, effective from 12 July, SteelMint learnt from reliable sources. This is about 11-15% from the last price announcement which was made in June. NMDC fixed prices for lump iron ore (65.5%, 6-40mm) at INR 3,900/t, DR CLO (Fe 67%, 10-40mm) at INR 4,680/t and iron fines (64% – 10mm) at INR 2,810/t FoR, excluding royalty, DMF and NMET.
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