Entire quantity of iron ore lump offered from Koira mines was sold and bids received were higher by INR 250-300/MT than base price.
Odisha Mining Corporation (OMC), a state-owned miner conducted iron ore e-auction yesterday (i.e 4 Aug’17). Offered quantity comprised of 297,900 MT iron ore lump. The material put under hammer is from Gandhamardan, Daitari and Koira mines.
The miner had cut base prices by 16% for this e-auction. Iron ore lump base prices offered from OMC’s Gandhamardhan and Daitari mines observed reduction of INR 200/MT. While that offered from Koira mines have come down by INR 450/MT.
Entire quantity of offered Koira lump was sold
According to market sources report to SteelMint, the e-auction fetched good response with around 85% material getting sold. Entire quantity of lump offered from Koira mines was sold. And market sources shared that bidders quoted prices in line with current market price, above INR 250-300/MT than base price.
Base price of lump offered from Koira mines was at INR 2,300/MT. As per market participants report to SteelMint, bids received were in the range of INR 2,550-2,650/MT (ex-mines prices, including Royalty). Thus fetched bids were in line with the current prevailing market price.
And around 70% of the material offered from Daitari mines was sold while around 68% of the material offered from Gandhamardan region was sold.
Base Price comparison for OMC iron ore e-auction:
| Mines | Size | Fe (%) | Base Price | Base Price | Base Price | Change | Change | Quantity |
| (mm) | as on 6 Apr’17 | as on 05 Jun’17 | as on 04 Aug’17 | (in INR/MT) | (in %) | (MT) | ||
| Gandhamardan | 10-180 | 65 | 1,900 | 1,900 | 1,700 | -200 | -10.50% | 5000 |
| 10-40 | 62 | 2,200 | 2,200 | 2,000 | -200 | -9% | 70,000 | |
| 10-30 | 62 | – | 2,200 | 2,000 | -200 | -9% | 2,900 | |
| Kurmitar (Koira) | 10-40 | 62 | 2,700 | 2,750 | 2,300 | -450 | -16% | 150,000 |
| Daitari | 10-40 | 62 | 2,550 | 2,600 | 2,400 | -200 | -8% | 70,000 |
| Total | 297,900 | |||||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
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