OMC has put forward an e-auction for 348,000 MT Iron ore through MSTC; cuts base price for few grades offered in the e-auction.
Odisha Mining Corporation (OMC) has put forward an e-auction for 348,000 MT Iron ore (160,000 MT Fines & 188,000 MT Lumps ) to be held on 12 May’15. The material has been offered from Barbil, Gandhamardan, Koira and Daitari mines. The company has cut prices for some grades, with few kept unchanged against last e-auctions.
Koira mines, being a major mine whose material has been offered in this auction (approx 50,000 MT Fines & 50,000 MT Lumps), has kept prices unchanged for Fines (Fe 60-62%) whereas a decline of 12% has been seen in prices of Lumps (Fe 62%).
A decrease of 13% in base price of Fines Fe 62-64% offered by Daitari mines is seen and 12% reduction in prices of grade Fe 60-62. However, prices of Lumps offered from these mines has been kept unchanged against previous e-auctions.
Gandhamardan mines, another major mine whose approximate 130,000 MT (80,000 MT Lumps & 50,000 MT Fines) has been put under hammer has kept prices unchanged for the upcoming auction.
Base Price Comparison in Iron Ore E-auctions
|
Iron ore Fines |
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| Region | Size (mm) | Grade (Fe%) | Base Price on 12 May’15 |
Base price on 02 Apr’15 |
Base price on 07 Mar’15 |
% Change |
Qty Offered |
| Gandhamardan | (-) 10 | 60-62 | 1,520 | 1,520 | – | 0 | 40,000 |
| Gandhamardan | (-) 10 | 54-60 | 1,333 | 1,333 | – | 0 | 10,000 |
| Koira | (-) 10 | 60-62 | 1,565 | – | 1,565 | 0 | 50,000 |
| Daitari | (-) 10 | 60-62 | 1,750 | 2,000 | – | -12 | 10,000 |
| Daitari | (-) 10 | 62-64 | 1,900 | 2,200 | – | -13 | 50,000 |
| Total | 160,000 | ||||||
|
Iron ore lumps |
|||||||
| Region | Size (mm) | Grade (Fe%) | Base Price on 12 May’15 |
Base price on 02 Apr’15 |
Base price on 25 Feb’15 |
% Change |
Qty Offered |
| Barbil | 10-40 | 62 | 3,050 | 3,237 | – | -5 | 8,000 |
| Gandhamardan | 10-40 | 62 | 3,000 | 3,000 | – | 0 | 60,000 |
| Gandhamardan | 10-180 | 65 | 2,650 | 2,650 | – | 0 | 20,000 |
| Koira | 10-40 | 62 | 3,200 | – | 3,641 | -12 | 50,000 |
| Daitari | 10-40 | 62 | 3,000 | 3,000 | – | 0 | 50,000 |
| Total |
188,000 |
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Quantity in MT
Base price in INR/MT on ex-mines basis; inclusive of royalty
Source: SteelMint Research
Poor response in last E-auctions
Responses to last three e-auctions conducted by OMC were not so pleasant. In the last e-auction conducted on 02 Apr’15, the entire round fetched flat bids and only 50% of the total offered quantity (Lumps) could be sold. It has been assessed that the company has continuously declined its prices due to poor responses in the e-auctions.
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