OMC’s Iron ore tender for sale of 61,500 MT material from its various mines has fetched high bids from the bidders.
Odisha Mining Corporation, a state government undertaking company, had floated a tender on 12 Sep, 2014 for sale of various grades of Iron ore produced at its different mines. For this tender, the bids have risen by INR 300-2,000/MT against Q2 FY15 prices.
|
Region |
Iron Ore Type |
Quantity (MT) |
H-1 Bids |
Bidders |
Q2 (Jun-Sep) Prices |
Change |
|
Barbil |
10–40 mm, (Fe: +62%) |
5,000 |
5,051 |
Anjani Steels (Chhattisgarh) |
4,595 |
+460 |
|
Gandhamardan |
10–40 mm, (Fe: +62%) |
10,000 |
4,701 |
Anjani Steels (Chhattisgarh) |
4,059 |
+650 |
|
Gandhamardan |
10–40 mm, (Fe: +62%) |
3,000 |
4,651 |
Anjani Steels (Chhattisgarh) |
3,303 |
+1,350 |
|
Gandhamardan |
10–180 mm (Fe: +65%) |
2,000 |
3,811 |
Priti Pragyan Minerals (Odisha) |
3,505 |
+305 |
|
Gandhamardan |
5–18 mm (Fe: +64%) |
1,500 |
5,551 |
Anjani Steels (Chhattisgarh) |
– |
– |
|
Koira |
10–40 mm, (Fe: +62%) |
40,000 |
6,209 |
Prakash Industries (Chhattisgarh) |
4,250 |
+2,000 |
|
Total |
|
61,500 |
|
|
|
|
Prices in INR/MT on ex-mines basis including royalty
H-1 bids for Q3 FY15 (Oct’14-Dec’14)
Source: SteelMint Research
The last OMC’s tender of Daitari mines was not encouraging because it was called off after H1 bidder (Electrosteel Steels), which was discovered as a lease holder that’s against the criteria of OMC’s tender.
South African Lump Imports likely to rise further
OMC (Odisha Mining Corporation) is one of the largest merchant miners in the state, which produces roughly 2-3 MnT on an annual basis.
Rising bids for Iron ore lumps have given more room for imports as some of big plants like Bhushan, Visa Steels and Adhunik Metaliks have signed MoU with OMC for supply of raw material.
Market experts say, imports may rise, especially for South African lump of size 6-40 mm and grade 64+%.
Reference prices for S. African Kumba lumps are at USD 88/MT CFR Indian West Coast for 70,000-80,000 MT vessel, loading in October/November.
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