Odisha’s state-owned miner- Odisha Mining Corporation (OMC) had scheduled its iron ore e-auction on 05th Jan’19. Total quantity put under the auction was 390,000 MT iron ore fines. The material was from Gandhamardan, Daitari, and Koira mines. Traders were restricted to take part in this auction. The base prices for fines had been reduced by INR 100/MT from each mines as against the base price of previous e-auction held on 05 Nov’18.
According to market sources report to SteelMint, the entire quantity of iron ore fines put up for auction was sold out with bids being fetched higher upto INR 100/MT over the set base price.
Bids for fines offered from Koira mines witnessed at INR 1100-1150/MT , increase up to INR 100/MT over the set base price of INR 1050/MT. Material offered from Daitari mines observed an increase in bids up to INR 50/MT to INR 2,300-2,350/MT against base price which was at INR 2,300/MT.
As per sources the major buyers in the e-auction were – Vizag Steel, JSPL, MESCO, Monnet Ispat.
Bid price comparison of OMC Iron ore e-auctions-
| Mines | Size | Fe (%) | Base Price as on 05th Nov’18 | Bid price as on 05th Nov’18 | Base Price as on 05th Jan’19 | Bid price as on 05th Jan’19 | Quantity Booked |
| (mm) | (INR/MT) | (INR/MT) | (INR/MT) | (INR/MT) | (MT) | ||
| Gandhamardan | -10 | 60-62 | 1,300 | 1,650-1,700 | 1,200 | 1,200 | 120,000 |
| Kurmitar (Koira) | -10 | 62-60 | 1,150 | 1,500-1,550 | 1,050 | 1,100-1,150 | 150,000 |
| Daitari | -10 | 64-62 | 2,400 | 2,400-2,450 | 2,300 | 2,300-2,350 | 120,000 |
| Total | 390,000 | ||||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
As per data maintained with SteelMint, OMC iron ore production for the month of Nov’18 increased by 29% to 0.94 MnT as against 0.73 MnT a month ago. In FY18, the miner recorded production of 7.92 MnT. The miner is planning to increase iron ore production in the coming years from its mines.
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