The company cut base prices of iron lump upto INR 400/MT and fines upto INR 350/MT in the upcoming iron ore e-auction.
Odisha Mining Corporation (OMC) recently scheduled an iron ore e-auction to be held on 11 Aug’15. In this e-auction, the company has put forward 518,000 MT iron ore. Out of the total, 178,000 MT is fines and 340,000 MT is lumps.The material offered are from Barbil, Gandhamardan, Koira, and Daitari mines.
In the current round, base prices of all materials offered from different mines has been reduced. Base prices of lump (10-40 mm, Fe 62%) offered from Koira Mines have been corrected by INR 400/MT and it is currently offered at INR 2,500/MT. This same material was put under auction on 23 July’15. The quantity offered was 150,000 MT at INR 2,900/MT. Due to higher base prices, only 52,000 MT of the total material in the previous e-auction could be booked.
Company had also cut base prices for material offered from other mines like Barbil, Gandhamardan and Daitari upto 23% and 13% respectively.
If we look back at few of the previous e-auctions conducted by OMC, the company has not been able to fetch good response due to higher base priced material offered in the e-auctions. As majority of the material from the past few auctions remained unsold, it was anticipated that the company may be be forced to cut base prices in the upcoming e-auctions.
Base Price Comparisons of OMC Iron ore E-auctions
| Mines | Size (mm) |
Fe(%) | Base Price on 11 Aug’15 |
BasePrice on 23 July’15 |
Base Price on 09 July’15 |
Base Price on 17 June’15 |
Base Price on 25 May’15 |
Change | Qty Offered (MT) |
| Barbil | -10 | 62-60 | 1,150 | – | 1,500 | – | – | 23% | 8,000 |
| Koira | 10-40 | 62 | 2,500 | 2,900 | – | – | – | 14% | 100,000 |
| -10 | 62-60 | 1,150 | – | – | 1,500 | – | 23% | 60,000 | |
| Gandhamardhan | 10-40 | 62 | 2,400 | – | – | – | 2,500 | 4% | 70,000 |
| 10-180 | 65 | 2,000 | – | – | – | 2,100 | 5% | 20,000 | |
| -10 | 62-60 | 1,250 | – | – | – | 1,432 | 13% | 50,000 | |
| Daitari | 10-40 | 62 | 2,450 | – | 2,600 | – | – | 8% | 150,000 |
| -10 | 64-62 | 1,700 | – | 1,700 | – | – | – | 60,000 | |
| Total |
518,000 |
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Quantity in MT
Base price in INR/MT on ex-mines basis; inclusive of royalty
Source: SteelMint Research
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