Only 29% of the offered material was sold via e-auction conducted on 01 June’16.
State-controlled miner OMC, has recently conducted an e-auction for 815,000 MT iron ore (560,000 MT CLO & 255,000 MT fines) on 01 June’16. The company sold around 29% of the offered quantity i.e. 237,000 MT mainly from Gandhamardan, Koira and Daitari mines.
Koira mines, from where the majority of the material was offered i.e. 300,000 MT CLO & 70,000 MT fines. Out of the total offered quantity, 176,000 MT CLO, and only 16,000 MT fines was sold off. According to market sources, Monnet Ispat procured the whole amount of CLO and fines had been procured by Bhushan Steel.
However, all the offered lots from Gandhamardan mines in the e-auction went unsold. Alongside, out of the total 10-40 mm lumps offered (135,000 MT) from Daitari mines, only 45,000 MT CLO was sold, rest lumps and fines remained unsold.
OMC E-auctions received poor responses in past few e-auctions
It’s been consecutively two or more auctions, that the company could not able to receive a good response in its e-auctions. Few market participants blame that because of higher base prices the company is unable to get a better response in the auctions.
Alongside, few market participants also shared that since OMC has long-term contracts with Odisha-based and outside Odisha-based steel as well as sponge units, the ongoing e-auctions are receiving less response and participation.
The company is yet to decide and take a call regarding the leftover material from previous few e-auctions. However, if the situation persists, it might be possible that the company will reduce their base prices for the upcoming e-auctions.
Result of OMC iron ore e-auction held on 01 June’16
| Mines | Size (mm) | Fe (%) | Base Price | Quantity Offered (MT) | Quantity Sold (MT) |
| Gandhamardan | 10-40 | 62 | 1,750 | 70,000 | – |
| 5-18 | 65 | 2,200 | 20,000 | – | |
| 10-180 | 65 | 1,500 | 35,000 | – | |
| -10 | 62-60 | 800 | 135,000 | – | |
| Kurmitar (Koira) | 10-40 | 62 | 1,700 | 300,000 | 176,000 |
| -10 | 62-60 | 900 | 70,000 | 16,000 | |
| Daitari | 10-40 | 62 | 1,800 | 135,000 | 45,000 |
| -10 | 64-62 | 1,350 | 50,000 | – | |
| Total |
815,000 |
237,000 | |||
Base/bid prices in INR/MT on ex-mines basis; including of royalty
Source: SteelMint Research
Leave a Reply