Odisha’s state-owned miner- Odisha Mining Corporation (OMC) had scheduled its iron ore e-auction today i.e. 03 Oct’18. Total quantity put under the auction was 445,000 MT iron ore Lumps. The material was from Gandhamardan, Daitari, and Koira mines. Traders were restricted to take part in this auction.
The auction fetched flat bids with entire quantity of Koira and Daitari getting booked. Bids for Lumps offered from Daitari mines observed marginally increase in bids by INR 50-100/MT to INR 4,550-4,600/MT against base price which was INR 4,500/MT. Lumps offered from Koira mines fetched bids in the range of INR 4,600-4,650/MT against base price INR 4,600/MT.
However, Gandhamardan mines received a dull response with only 38,000 MT getting booked at a set base price.
Out of the total quantity of 445,000 MT iron ore lumps offered, around 52% (233,000, MT) of material got booked.
OMC had increased base price for lump offered from Daitari mines is increased by INR 700/MT (18%) and for Koira mines base price is up by INR 800/MT (21%) against the last lump e-auction held in Aug’18.
Base price comparison of OMC Iron ore e-auctions-
| Mines | Size (mm) | Fe (%) | Base Price as on 03 Aug’18 | Bid Price as on 03 Aug’18 | Base Price as on 03 Oct’18 | Bid Price as on 03 Oct’18 | Quantity Offered (MT) | Quantity Sold (MT) |
| Gandhamardan | 10-40 | 62% | 3,500 | 3,500 | 4,100 | 4,100 | 200,000 | 23,000 |
| 10-180 | 65% | 2,700 | 2,900-2,950 | 3,400 | 3,400 | 50,000 | 15,000 | |
| Kurmitar (Koira) | 10-40 | 62% | 3,800 | 3,850-3,900 | 4,600 | 4,600-4,650 | 90,000 | 90,000 |
| Daitari | 10-40 | 62% | 3,800 | 3,950-4,000 | 4500 | 4,550-4,600 | 105,000 | 105,000 |
| Total | 445,000 | 233,000 | ||||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
Odisha based merchant miners had increased prices by INR 600-700/MT in August and again announced another hike of INR 500/MT in 1st week of September which made Odisha iron ore prices to hover close to 6 years high. However, miners are offering discounts to buyers of around INR 300-500/MT varying as per the quantity of purchase.
Amid less buying interest and decline in semi-finished and domestic pellet prices, miners are offering discounts.
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