State-owned Odisha Mining Corporation (OMC), recently conducted e-auction for 960,000 MT iron ore on 29 Nov’16. The company received an overwhelming response. Around 797,000 MT material was booked out of the total offered quantity.
According to market sources, all the lot of material fetched bids in the e-auction. Chhattisgarh and Odisha based sponge manufacturers aggressively bid in the e-auction, around 85% of the material booked was procured by them and it was booked at the base prices only.
Koira mines 40% of the material offered in the e-auction received lukewarm response. CLO (Fe 62%) offered was 300,000 MT, out of which 275,000 MT was booked. In addition, another lot comprises of fines receives moderate response and only 26,000 MT out of 100,000 MT offered was booked. The miner has increased the Fe 62% CLO base prices up to INR 450/MT and offered the material at INR 1,750/MT.
The Gandhamardhan iron ore mines (Fe 65% 10-180 mm) material received overwhelming response. 100% of the material got booked at the base price expect the low grade fines (Fe 58-54) which attracted bids INR 200/MT higher than that of offered base prices at INR 500/MT.
The Daitari mines’ also received good response and around 52% of the material offered was booked. Various steelmakers as well as sponge manufacturers participated in the e-auction to bid offered from Daitari mines. The miner increased the base prices for CLO (Fe 62%) by INR 300/MT and offered the material at INR 1,700/MT in this e-auction.
It is to be noted that from the previous two-three auctions, OMC has managed to attract participants in its e-auctions. As, Odisha has revised the ore linkage policy for OMC which allows even those steel companies with captive ores to participate in the auctions if they are facing deficit to run their operational steel mines.
Result of OMC iron ore e-auction held on 29 Nov’16
| Mines | Size (mm) | Fe (%) | Base Price as on 28 Nov’16 | Quantity Offered (MT) | Quantity Sold (MT) |
| Gandhamardan | 10-180 | 65 | 1400 | 35,000 | 35,000 |
| 10-40 | 62 | 1800 | 70,000 | 70,000 | |
| -10 | 58-54 | 500 | 100,000 | 100,000 | |
| -10 | 62-60 | 800 | 135,000 | 135,000 | |
| Kurmitar (Koira) | 10-40 | 62 | 2200 | 300,000 | 275,000 |
| -10 | 62-60 | 750 | 100,000 | 26,000 | |
| Daitari | 10-40 | 62 | 2000 | 120,000 | 56,000 |
| -10 | 64-62 | 1300 | 100,000 | 100,000 | |
| Total | 960,000 | 797,000 | |||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
90% of the material was booked in the last e-auction of 905,000 MT conducted on 28 Sept’16
The company conducted last e-auction of 905,000 MT iron ore on 28 Sept’16. The company had managed to receive overwhelming response as 90% of the material offered got booked and received aggressive bids in the e-auction.
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