Odisha Mining Corporation had scheduled its iron ore fines e-auction on 12th July’19 in which base prices increased upto INR 100/MT against the base price of the previous e-auction conducted on 14th May’19.
The total quantity put under auction was 334,500 MT iron ore fines. As per the sources OMC has received flat bids in the auction and the material booked was at quoted base price. The material was from Gandhamardan, Daitari, and Koira mines. Traders were restricted to take part in this auction.
As per sources, most of the material from Gandhmardan mines fetched bids for about 165,000 MT fines out of 180,000 MT. From its Koira mines about 4,000 MT was sold out of 4,500 MT fines offered. However, some material was booked from Daitari but quantity could not be confirmed at the time of publishing this report.
Odisha based merchant miners kept iron ore prices unchanged from the last one month or so after receiving decent bookings at the beginning of Jun’19. On the other side, India’s domestic sponge and billet prices plunged amid weak market fundamentals.
Price comparison of OMC iron ore e-auctions-:
| Mines | Size | Fe (%) | Bid Price as on 07th Mar’19 | Base Price as on 14th May’19 | Bid Price as on 14th May’19 | Base Price as on 12th Jul’19 | Bid Price as on 12th Jul’19 | Quantity Offered |
| (mm) | (INR/MT) | (INR/MT) | (INR/MT) | (INR/MT) | (INR/MT) | (MT) | ||
| Gandhamardan | -10 | 60-62 | 1,200 | 1,250 | 1,250 | 1,350 | 1,350 | 180,000 |
| Kurmitar (Koira) | -10 | 62-60 | 1,100 | 1,150 | 1,150 | 1,250 | 1,250 | 4,500 |
| Daitari | -10 | 64-62 | 2,500 | 2,450 | 2,450 | 2,450 | 2,450 | 150,000 |
| Total | 334,500 | |||||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
OMC iron ore production for the month of May’19 recorded at 0.81 MnT, down as against 1.39 MnT in Apr’19.
OMC is all set with iron ore production ramp-up plans for coming years to make up for expected supply disruption after March 2020 following lease expiry. OMC is planning to achieve 20 MnT iron ore output by FY21.
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