Odisha Mining Corporation (OMC), a state-owned miner conducted its e-auction for 292,000 MT iron ore fines yesterday i.e 7 Sept’17. The material put under hammer was from Gandhamardan, Daitari and Koira mines.
The miner had kept iron ore fines base prices unchanged for the material offered from Gandhamardan and Koira mines. However base prices for material offered from Daitari mines has come down by INR 100/MT.
According to market sources report to SteelMint, the e-auction received overwhelming response amid positive market sentiments and hike in prices by Odisha merchant miners in Aug’17. Entire quantity offered was sold.
Iron ore fines (Fe 62-60%) offered from Koira mines which had base price of INR 800/MT received bids at INR 1,150/MT (ex-mines). Thus witnessing hike of 44% against base price.
Similarly iron ore fines offered from Daitari mines fetched bids at INR 1,650/MT against base price of INR 1,500/MT.
Iron ore fines offered from Gandhamardan mines majorly fetched flat bids and for one lot bid went higher by around INR 50/MT than floor price.
Base price comparison of OMC iron ore e-auctions
| Mines | Size | Fe (%) | Base Price | Base Price as on 05 Jul’17 |
Base Price | Change | Change | Quantity |
| (mm) | as on 05 Jun’17 | as on 07 Sept’17 | (in INR/MT) | (in %) | (MT) | |||
| Gandhamardan | -10 | 64-62 | 1,300 | 1,100 | 1,100 | = | = | 24,000 |
| -10 | 60-62 | 900 | 800 | 800 | = | = | 50,000 | |
| -10 | 54-58 | 500 | 500 | 500 | = | = | 35,000 | |
| -10 | Minus 60 (subgrade) |
600 | 550 | 550 | = | = | 33,000 | |
| Kurmitar (Koira) | -10 | 62-60 | 1,000 | 800 | 800 | = | = | 50,000 |
| Daitari | -10 | 64-62 | 1,600 | 1,600 | 1,500 | -100 | -6% | 100,000 |
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
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