The State-run Odisha Mining Corporation (OMC)’s latest E-auction of Iron ore received extremely cold response. With most of the lots went unsold, company may plan to either re-auction it or offer it on free sales basis.
The e-auction held on Friday for sale of 257,000 MT Iron Ore (99,000 MT lumps & 158,000 MT Fines), about 33,000 MT Iron ore lumps received bids and rest went unsold, according to participants.
OMC had cut base prices by 15-20%
Despite OMC cut base prices by 15-25%, it failed to receive response from buyers. Steel makers blame logistical issues as major bottleneck for making them participate in E-auction.
Merchant miners offer cheaper ore
Competitive offers from merchant miners have also dampened response to OMC’s auction. Most of the steel makers prefer buying ore from private miners, whose offers are comparatively cheaper.
” Current offers for Fe 62.5% Fe Fines by private miners are around INR 1,800-2,000/MT Ex- Mines basis , where as OMC’s base price has been fixed at INR 2,000-2,400/MT for same grade.” said a Pellet manufacturer in Odisha.
OMC Iron Ore E-auction Results- (Provisional)
| Iron ore lumps |
||||||||
| Region | Grade | Size | Current | Previous | % Change in |
Quantity | Remarks | |
| (mm) | Base Price | Base Price |
Base Price |
In MT | ||||
| Barbil | Fe +62% | 10-40 | 3,237 | 4,379 | 26% | 6,000 | No Bids | |
| Daitari | Fe +62% | 10-40 | 3,237 | 3,808 | 15% | 65,000 | 10,000: Visa 10,000: Aarti 4,000: Shyam 3,000: KJ Ispat 38,000: No Bids |
|
| Gandhamardhan | Fe +62% | 10-40 | 3,318 | 3,903 | 15% | 25,000 | 5,000:Bhaskar 20,000: No Bids |
|
| Gandhamardhan | Fe +65% | 10-180 | 2,955 | 3,427 | 14% | 3,000 | No Bids | |
| Total | 99,000 | |||||||
| Iron Ore Fines |
||||||||
| Barbil | Fe 60-62% | (-) 10 | 2,057 | 2,571 | 20% | 13,000 | No Bids | |
| Daitari | Fe 62-64% | (-) 10 | 2,427 | 2,856 | 15% | 33,000 | No Bids | |
| Daitari | Fe 60-62% | (-) 10 | 2,261 | 2,666 | 15% | 17,000 | No Bids | |
| Gandhamardhan | Fe 60-62% | (-) 10 | 2,023 | 2,380 | 15% | 90,000 | No Bids | |
| Gandhamardhan | Fe 54-60% | (-) 10 | 1,333 | 1,333 | – | 5,000 | No Bids | |
| Total | 157,000 |
Prices in INR/MT
* Provisional data as per participants and market sources
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