80% of iron lumps booked in re-auction after OMC cut base prices upto 21%.
OMC’s iron ore re-auction for 276,000 MT (146,000 MT lumps & 130,000 MT fines) was conducted on 25 May’15. The company re-auctioned iron ore in order to sell the quantity left over in the auction conducted on 12 May’15, since the auction had fetched poor response due to higher base prices.
In the current round, out of the total quantity of iron lumps i.e. 146,000 MT, a big chunk i.e. 117,000 MT was sold. However, only 25,000 MT fines was booked by buyers, bringing total quantity of iron ore sold in the auction to 142,000 MT. Iron fines were unable to fetch good bids and most of the lots remain unsold. The material has been sold almost in the range of base prices quoted by the company.
Reduction in Base Prices Fetches Bids
The idea of reducing the base prices led the company to fetch good bids. This time, the company reduced base prices by upto 21% against last e-auction. Base prices of fines were reduced in the range of 6-14% and base prices of lumps underwent 18-21% reduction.
Preferable Buying of Iron Lumps
Massive quantity of iron lump was sold in this re-auction. Buyers found base prices of iron lumps lower than private mines, which drove them to purchase material in this auction. However, buying interest in iron fines was not seen, since its base prices were in the range of offers of private miners.
Provisional Data of Iron ore E-Auction
| OMC Mines | Size (mm) | Fe(%) | Base Price on 25 May’15 |
Base Price on 12 May’15 |
Base Price Change (%) |
Quantity Offered (MT) |
Booked Quantity (MT) |
| Barpada Kasia (Barbil) | 10-40 | 62 | 2,500 | 3,050 | -18 | 8,000 | 8,000 |
| Gandhamardan | 10-180 | 65 | 2,100 | 2,650 | -21 | 2,0000 | 20,000 |
| 10-40 | 62 | 2,500 | 3,000 | -17 | 58,000 | 44,000 | |
| -10 | 62-60 | 1,432 | 1,520 | -6 | 50,000 | – | |
| Kurmitar (Koira) | -10 | 56-52 | 900 | – |
– |
20,000 | – |
| Daitari | 10-40 | 62 | 2,600 | 3,000 | -13 | 60,000 | 45,000 |
| -10 | 64-62 | 1,700 | 1,900 | -10 | 50,000 | 25,000 | |
| -10 | 62-60 | 1,500 | 1,750 | -14 | 10,000 | – | |
| Total | 276,000 | 142,000 | |||||
E-Auction floor prices in INR/MT
Ex-Mines prices, including royalty
Source: SteelMint Research
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