State-owned miner Odisha Mining Corp (OMC) had scheduled an e-auction for iron ore fines and lumps today (2 Nov’21). About 1.013 mn t of iron ore fines and 887,000 t of lumps were put up for auction. For fines, the miner has reduced prices by up to INR 650/t, while for lumps the reserve price has remained unchanged as per OMC’s last auction on 1 Oct’21.
In the lumps e-auction, the 780,000 t received bids. Bids in the auction increased by up to INR 3,200/t as against the base price, according to sources. However, confirmation from the company officials could not be received till the time of publishing this report.
Market highlights:
- Pellet prices increase on coal price rally: Domestic pellet offers in central India have increased on m-o-m basis. SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 13,110/t to DAP Raipur on a monthly average basis, up against INR 11,400/t a month ago. The price rally in imported coal raised sponge and pellet offers last month.
- Odisha iron ore lump prices range-bound: SteelMint’s Odisha iron ore index 5-18mm, Fe 63% stood at INR 10,400/t ex-mines in Oct’21 versus INR 10,500/t in Sept’21.
OMC’s fines auction fetches flat bids
The fines e-auction received bids for about 70% (708,000t) of the total material. The bids, however, stayed flat, ie, at the base price level.
With 13.3 mn t of iron ore production in FY’21, OMC had emerged as the leading merchant miner in Odisha.
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