Only 32% iron ore was sold in auction conducted on 26 Sept’15. OMC had cut base prices for few grades offered in the auction.
Odisha Mining Corporation (OMC), recently conducted an e-auction for 693,000 MT iron ore on 26 Sept’15. The company received moderate response and only 220,000 MT iron ore was sold. Participants showed buying interest for Barbil, Koira and Daitari mines.
Buyers show lesser interest for OMC material as it is costlier than that of private miners. In addition, the state govt fixed new transport charges to reduce the cost of transportation for state based steel mills.
In the current round, the company offered 140,000 MT fines and 553,000 MT lumps. However, the company could only sell 56,000 MT fines and 164,000 MT lumps. The material was sold almost in the range of base prices quoted by the company.
The whole lot from Gandharmardan Mines remained unsold. The company had not reduced base prices for material from these mines. As such, not a single participant quoted to lift the material.
For Daitari Mines, the company reduced the base prices upto 10% in this e-auction, but only 70,000 MT (lumps) could have booked out of the total i.e. 214,000 MT.
Result of OMC iron ore e-auction held on 26 Sept’15
| Mines | Size (mm) | Fe (%) | Base Price | Offered Qty (MT) | Allotted Qty (MT) |
| Barbil | -10 | 62-60 | 1,350 | 16,000 | 16,000 |
| 10-40 | 62 | 2,500 | 13,000 | 8,000 | |
| Koira | 10-40 | 62 | 2,500 | 300,000 | 86,000 |
| -10 | 62-60 | 1,150 | 60,000 | 40,000 | |
| Gandhamardan | 10-40 | 62 | 2,400 | 70,000 | – |
| 10-180 | 65 | 2,000 | 20,000 | – | |
| Daitari | 10-40 | 62 | 2,200 | 150,000 | 70,000 |
| -10 | 64-62 | 1,550 | 60,000 | – | |
| -10 | 62-60 | 1,350 | 4,000 | – | |
| Total | 693,000 | 220,000 | |||
Qty in MT
Base & bid prices in INR/MT on ex-mines basis; inclusive of royalty
Source: SteelMint Research
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