Odisha Mining Corporation (OMC), a state-owned miner has scheduled next iron ore e-auction on 4 Oct’17 for 310,000 MT iron ore lump. The material to be put under hammer is from Gandhamardan, Daitari and Koira mines.
The miner has kept iron ore lump base prices unchanged for the material offered from Gandhamardan mines. However base prices for material offered from Koira and Daitari mines have observed increment of INR 350/MT and INR 200/MT respectively.
Prior to this, OMC had conducted lump auction for 297,900 MT on 04 Aug’17 in which it had cut prices by 16%. The e-auction fetched good response with around 85% of the material getting sold.
On the other hand, major Odisha based merchant miners had twice raised prices in Aug’17 owing to hike in sponge prices. However in Sept’17, the miners continued to hold prices at similar levels. Sources shared that production has remained low over monsoons and buying activities are dull owing to festive holidays and fall in sponge prices.
Base price comparison of OMC iron ore e-auctions
|
Mines |
Size | Fe (%) | Base Price | Base Price | Base Price | Change | Change | Quantity |
| (mm) | as on 05 Jun’17 | as on 04 Aug’17 | As on 04 Oct’17 | (in INR/MT) | (in %) |
(MT) |
||
| Gandhamardan | 10-180 | 65 | 1,900 | 1,700 | 1,700 | = | = | 5,000 |
| 10-40 | 62 | 2,200 | 2,000 | 2,000 | = | = | 70,000 | |
| Kurmitar (Koira) | 10-40 | 62 | 2,750 | 2,300 | 2,650 | +350 | +15% | 150,000 |
| Daitari | 10-40 | 62 | 2,600 | 2,400 | 2,600 | +200 | +8% | 85,000 |
| Total | 310,000 | |||||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
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