SteelMint’s weekly Odisha iron ore fines index (Fe 62%) moved up by around INR 100/t w-o-w to INR 3,650/t ex-mines. Due to seasonal constraints in raw materials and limited offers from merchant players, iron ore prices have remained supported despite limited trade volumes.
As per sources, a deal for around 50,000 t of fines (Fe 62%) was concluded at the beginning of this week at INR 3,900/t ex-mines. However, due to lack of confirmation from buyers or sellers compelled SteelMint to keep this deal out of the calculation purview as our methodology.
Rationale:
- T1- One confirmed deal was reported for high grade ore (Fe 62%) but not considered for index calculation. Therefore, nil weightage was given in this week.
- T2- SteelMint received nine (09) offers and indicative prices under T2 trade deals in this publishing window out of which five (05) were taken into consideration and given 100% weightage. To check SteelMint’s iron ore assessment, pricing methodology and specification documents Click here.
Recent auctions line-up: Steel Authority of India Ltd (SAIL) had lined up two iron ore auctions on 26 and 28 July but which have been re-scheduled for 4 and 6 August due to some technical glitches. The material offered were iron ore fines (Fe 62.5% indicative) and iron ore dump fines (Fe 59% indicative) from Bolani mines in Odisha.
Vedanta’s subsidiary, Electrosteel Steels Ltd (ESL), has scheduled an auction for sale of around 400,000 t of iron ore fines (Fe57.5-59.5%) on 2 August from its Nadidih BICO and Feegrade mines in Odisha’s Keonjhar district. The floor price for Fe 57.5% and Fe 59.5% grades fines are set at INR 1,500/t and 2,100/t, respectively (including royalty, DMF and NMET charges).
Highlights from other states:
- Over 35,000 t of iron ore booked at Sri Kumaraswamy Mineral Exports’ auction: Sri Kumaraswamy Mineral Exports Private Limited (SKMEPL) had scheduled an auction on 29 July for sale of 154,370 t of iron ore from its Ramanadurga mines in Karnataka’s Bellary district. According to market sources, 32,000 t of lumps (Fe56.5-66%) were booked out of 60,000 t at around INR 2,426-4,363/t while only 6,370 t of fines (Fe50-66.5%) were booked out of 94,370 t at around INR 1,300-3,800/t (excluding royalty, DMF and NMET).
- DR-CLO lots in NMDC’s Chhattisgarh auction receive active response: NMDC conducted two iron ore auctions on 26 July from Chhattisgarh. The material offered was DR-CLO, Baila lumps, fines and ROM. The entire lot of 16,800 t of DR-CLO (10-40mm, Fe 67% indicative) was booked at INR 5,115/t against the base price of INR 4,715/t while the remaining lots from Bacheli and Kirandul remained unsold, as per sources.
- Maharashtra-based miner keeps offer stable: A Maharashtra-based iron ore miner has kept offers stable. Offers for lumps (5-18mm, Fe 63%) were recorded at INR 8,000/t FOR Raipur — same as last week. Also, iron ore fines Fe 63% stand at INR 4,500/t FOR Raipur.
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