OMC has put forward an e-auction for 693,000 MT iron ore; has cut base price for few grades offered in the e-auction.
Odisha Mining Corporation (OMC) has put forward an e-auction for 693,000 MT iron ore (140,000 MT fines & 553,000 MT lumps) to be held on 26 Sept’15. The material has been offered from Barbil, Gandhamardan, Koira and Daitari mines.
The company has cut prices for some grades, and has kept others unchanged against last e-auctions. Reduction of 10% in base price of fines and lumps offered by Daitari mines had been done against previous e-auctions.
Prices for material from Koira Mines, a major mine whose material has been offered in this auction (60,000 MT Fines & 300,000 MT Lumps), have been kept unchanged.
In addition, the company has also increased base price of fines (Fe 62-60%) by 17% offered by Barbil mines in this e-auction.
Base Price Comparisons of OMC Iron ore E-auctions
| Mines | Size (mm) | Fe (%) | Base Price on 26 Sept’15 |
Base Price on 11 Aug’15 |
BasePrice on 25 May’15 |
Change (%) | Qty Offered (MT) |
| Barbil | -10 | 62-60 | 1,350 | 1,150 | – | +17% | 16,000 |
| 10-40 | 62 | 2,500 | – | 2,500 | – | 13,000 | |
| Koira | 10-40 | 62 | 2,500 | 2,500 | – | – | 300,000 |
| -10 | 62-60 | 1,150 | 1,150 | – | – | 60,000 | |
| Gandhamardan | 10-40 | 62 | 2,400 | 2,400 | – | – | 70,000 |
| 10-180 | 65 | 2,000 | 2,000 | – | – | 20,000 | |
| Daitari | 10-40 | 62 | 2,200 | 2,450 | – | -10% | 150,000 |
| -10 | 64-62 | 1,550 | 1,700 | – | -9% | 60,000 | |
| -10 | 62-60 | 1,350 | – | 1,500 | -10% | 4,000 | |
| Total |
693,000 |
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Quantity in MT
Base price in INR/MT on ex-mines basis; inclusive of royalty
Source: SteelMint Research
Last iron ore e-auction for 518,000 MT received better response
Response in the last e-auction conducted on 11 Aug’15 received a better response as compared to previous few e-auctions. The company offered 518,000 MT iron ore, out of which, 211,000 MT was sold. This was due to the new transport charges fixed by the state govt. that reduced the cost of transportation for state based steel mills.
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