State owned, Odisha Mining Corporation (OMC), has put forward an e-auction for 625,000 MT iron ore on 18 Apr’16. The ore has been offered from Gandhamardan, Koira and Daitari mines.
The miner has notifies a sale of 625,000 MT iron ore which consist of 400,000 MT CLO & 185,000 MT fines.
The company has not corrected base rices for the upcoming e-auction. However, in some grades there is slight increase of INR50/MT for coming e-auction.
In its previous e-auction conducted on 18 Mar’16, offered ore was only belong to Gandhamardan mines. The e-auction remained a setback for OMC, as none of the material offered in the e-auction was sold off. So, this time the company had again put the leftover material from Gandhamardan mines in the upcoming e-auction.
This time again the company had not brought any change in the base prices. Its been two auctions in a row, the company is not able to get the better response as the base prices for auctions remained unchanged. However, few market participants feel that the e-auction would not remain so encouraging on 18 Apr’16.
Apart, the company had produced 3.4 MnT iron ore in FY16 (till Dec’15), and it is likely that OMC will produce around 4.5 MnT in FY16.However, the company’s production target was about 9 MnT for FY16.
Base price comparison of OMC iron ore e-auctions
| Mines | Size (mm) | Fe (%) | Base Price on 18 Apr’16 | Base Price on 18 Mar’16 |
Base Price on 26 Feb’16 |
Change(%) | Quantity (MT) |
| Gandhamardan | 10-40 | 62 | 1,750 | 1,750 | – | – | 50,000 |
| 5-18 | 65 | 2,200 | 2,250 | – | 2.2% | 15,000 | |
| 10-180 | 65 | 1,550 | 1,500 | – | 3.3% | 25,000 | |
| -10 | 62-60 | 800 | 800 | – | – | 100,000 | |
| Kurmitar (Koira) | 10-40 | 62 | 1,750 | – | 1,750 | – | 250,000 |
| -10 | 62-60 | 900 | – | 900 | – | 50,000 | |
| Daitari | 10-40 | 62 | 1,800 | – | 1,750 | 2.8% | 100,000 |
| -10 | 64-62 | 1,350 | – | 1,350 | – | 35,000 | |
| Total |
625,000 |
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Base prices in INR/MT on ex-mines basis; including of royalty
Source: SteelMint Research
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