Odisha’s state-owned miner- Odisha Mining Corporation (OMC) had scheduled its iron ore e-auction on 01st Feb’19. Total quantity put under the auction was 350,000 MT iron ore lumps. The material was from Gandhamardan, Daitari, and Koira mines. Traders were restricted to take part in this auction. The miner had cut base prices decreased by INR 650/MT against the previous e-auction conducted on 03 Dec’18.
The auction fetched dull response with nearly 42% (146,000 MT) material getting booked. The entire quantity offered from Daitari got booked however some quantities from Koira and Gandhamardan remained unsold. Nearly 40% material offered from Koira mines got booked and around 24% from Gandhamardhan mines.
Bids for lumps offered from Daitari mines observed an increase of around 4% against base price which was INR 3,550/MT. Lumps offered from Koira and Gandhamardan mines fetched bids at its base price.
Base price comparison of OMC iron ore e-auctions-
|
Mines
|
Size (mm) | Fe (%) | Base Price as on 03 Oct’18 | Base Price as on 03 Dec’18 | Bid Price as on 03 Dec’18 | Base Price as on 01 Feb’19 | Bid Price as on 01 Feb’19 | Quantity (MT) |
| Gandhamardan | 10-40 | 62% | 4,100 | 3,700 | 3,700 | 3,050 | 3,050 | 135,000 |
| 10-180 | 65% | 3,400 | 3,000 | 3,150-3,200 | 2,350 | 2,350 | 15,000 | |
| Kurmitar (Koira) | 10-40 | 62% | 4,600 | 4,200 | 4,200-4,250 | 3,550 | 3,550 | 150,000 |
| Daitari | 10-40 | 62% | 4,500 | 4,100 | 4,400-4,450 | 3,450 | 3,600 | 50,000 |
| Total | 350,000 | |||||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
SteelMint has learned from the market participants that the reason for weak response was lowered rates offered other merchant miners in Odisha. Last week, offers for 10-30mm from Odisha merchant miners was around INR 3,100 (Ex-Mines, including Royalty, DMF & NMET).
Odisha – India’s largest iron ore producing state has recorded Dec’18 production at 10.48 MnT, up 9% as compared to Dec’17 production at 9.59 MnT. On monthly basis, Dec’18 production increased marginally as against Nov’18 production at 10.4 MnT. Recently Serajuddin Mine has ramped up iron ore production last month and hit 1 MnT mark in Jan’19. Production figure has hit a 19-month high.
Leave a Reply