Odisha Mining Corporation (OMC), a state-owned miner has scheduled its next e-auction on 5 Jul’17 for 249,000 MT iron ore fines. The material to be put under hammer is from Gandhamardan, Daitari and Koira mines.
The miner has cut iron ore fines base prices up to INR 200/MT for the material offered from Gandhamardan and Koira mines. However base prices for material offered from Daitari mines has remained unchanged.
Base price comparison of OMC iron ore e-auctions
|
Mines |
Size | Fe (%) | Base Price | Base Price | Base Price as on 05 Jul’17 |
Change | Change | Quantity |
| (mm) | as on 6 Apr’17 | as on 05 Jun’17 | (in INR/MT) | (in %) |
(MT) |
|||
| Gandhamardan | -10 | 64-62 | – | 1,300 | 1,100 | -200 | -15% | 14,000 |
| -10 | 60-62 | 900 | 900 | 800 | -100 | -11% | 50,000 | |
| -10 | 54-58 | – | 500 | 500 | 0 | 0 | 17,000 | |
| -10 | Minus 60 (subgrade) | – | 600 | 550 | -50 | -8% | 18,000 | |
| Kurmitar (Koira) | -10 | 62-60 | 900 | 1,000 | 800 | -200 | -20% | 50,000 |
| Daitari | -10 | 64-62 | 1,650 | 1,600 | 1,600 | 0 | 0% | 100,000 |
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
OMC’s last e-auction fetched dull response – OMC had offered 508,900 MT of iron ore on 05 Jun’17 and out of this, only two lakh tonne was booked. Industry sources said the response to the auctions was weak as OMC continued its stand to hike base prices of lumps and fines. Base prices were hiked by up to 11%.
Odisha’s major merchant miners reduced prices in Jun’17 – Towards the end of Jun’17 major merchant miners in Odisha namely Rungta Mines, Serajuddin Mines and Indrani Patnaik reduced lump and fines prices. Lump prices moved down up to INR 400/MT and fines prices up to INR 150/MT.
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