Odisha Mining Corporation (OMC) received extremely poor response for its recent e-auction conducted for 387,000 MT Iron ore (238,000 MT Iron fines and 149,000 MT Iron lump). Only 25% of material put under hammer was sold.
Most of the Steel and Sponge makers kept themselves out of this e-auction owing to cheaper Iron ore available with private miners and secondly uncertain transport charges from OMC mines.
“Base price set by OMC is quite higher compared to other private miners. For instance, OMC’s Fe 62-64% Iron ore fines is priced at INR 2,856/MT. Whereas, other miners are offering Fe 63% at INR 2,000-2,200/MT ex-mines”, said a Sponge iron manufacturer, who participated in the last e-auction conducted by OMC in October.
Another Steelmaker, who bought Iron ore from OMC in last auction, mentioned that due to uncertain freight charges from mines to railway siding, the company did not participate in this auction.
Sources shared with SteelMint that one lot of 38,000 MT Iron ore lump (Fe 62%; 10-40 mm) from Gandharamardan mines was bought by Action Ispat at base price of INR 3,903/MT. While, from another lot of 98,000 MT Iron ore lump (Fe 62%; 10-40 mm) from Daitari mines, only 15,000 MT was sold to a Sponge maker.
One of 4,000 MT ROM (Fe 65%; 10-180 mm) from Gandhamardan mines was bought by a crusher unit at above INR 50/MT from the base price of INR 3,427/MT.
OMC Iron Ore Prices
| OMC Mines | Size (mm) | Fe% | Q3 FY15 (Oct-Dec’14) | Q2 FY15 (Jul-Sep’14) | Q1 FY15 (Apr-Jun’14) | Q4 FY14 (Jan-Mar’14) | Q3 FY14 (Oct-Dec’13) | Q2 FY14 (Jul-Sep’13) | Q1 FY14 (Apr-Jun’13) |
| Barbil | 10-40 | 62 | – | 4,595 | 3,701 | 3,701 | 3,701 | 3,701 | 3,801 |
| Fines | 62-60% | 3,150 | – | – | 1,520 | 1,900 | 1,714 | – | |
| Gandhamardan | 5-18 | 64 | – | – | – | – | 4,801 | 5,007 | – |
| 10-180 | 65 | – | 3,505 | 3,355 | 3,355 | 3,710 | 3,710 | – | |
| 10-40 | 62 | 5,000 | 4,059 | 3,531 | 3,531 | 3,303 | 3,701 | 3,801 | |
| Fines | 62-60 | 2,900 | – | – | 1,906 | 2,276 | 2,060 | – | |
| Fines | 60-54 | 1,700 | – | – | 1,330 | 1,700 | – | – | |
| Koira | 10-40 | 62 | 5,500 | 4,250 | 4,250 | 4,855 | 4,501 | 4,151 | 5,050 |
| 5-18 | 65 | 4,053 | – | – | 6,200 | ||||
| Fines | 62-60 | 3,450 | – | 1,818 | 1,900 | – | – | ||
| Daitari | 10-40 | 62 | 4,500 | – | 3,501 | 3,303 | 3,501 | 3,501 | 2,869 |
| Fines | 64-62 | 3,450 | – | – | – | 1,502 | – | – |
Ex-mines prices in INR/MT; including royalty
Source: SteelMint Research
NMDC Iron Ore Prices
| Size (mm) | Grade (Fe%) | Prices | ||
| Jan’15 | Dec’14 | Nov’14 | ||
| 6-40 | 65 | 4,200 | 4,200 | 4,400 |
| 10-150 | 65 | 3,690 | 3,690 | 3,860 |
| Blue Dust/Fines | 64 | 3,060 | 3,060 | 3,160 |
| 10-40, DR CLO | 67 | 4,990 | 4,990 | 5,190 |
Prices in INR/MT; 15% royalty extra
Prices are on FoR Siding basis
Source: SteelMint Research
Rungta Mines (Odisha) Iron Ore Prices
| Size (mm) | Grade (Fe%) | Prices | ||
| Jan’15 | Dec’14 | Nov’14 | ||
| 5-18 | 65 | 6,350 | 7,300 | 7,700 |
| 5-18 | 63 | 6,050 | 7,000 | 7,400 |
| 10-30 | 65 | 5,700 | 6,650 | 7,050 |
| 10-30 | 63 | 5,300 | 6,250 | 6,650 |
| Blue Dust/Fines | 63 | 2,700 | 3,600 | 3,900 |
Prices in INR/MT
Prices are on FoR siding basis; including royalty
Source: SteelMint Research
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