Odisha Mining Corporation (OMC) had put forward an e-auction for 779,000 MT iron ore ( 266,000 MT fines and 513,000 MT lump) on 9 Nov’15. The company has received weak response in the e-auction.
Out of the total iron ore, about 220,000 MT was sold from Koira and Daitari mines. Material sold involve only lump, however, buyers were not interested for fines as it is available at cheaper rates from private miners. Rest all the material remained unsold.
The material has been offered from Barbil, Gandhamardan, Koira and Daitari mines. Participants showed very less interest for Barbil and Gandhamardan mines and whole of the offered lots including lump and fines remained unsold. Mainly, Odisha based sponge manufacturers have purchased the material, however, C.G. based sponge manufacturers does not showed any interest towards material put under e-auction.
For the latest e-auction conducted on 9 Nov’15, the company had cut prices for some grades and has kept others unchanged against last e-auctions. Reduction of 9% in base price of lump offered by Koira mines and upto 3% in base prices of fines offered by Daitari mines.
If we look towards the last few auctions conducted by OMC, the company could not able to fetch good responses either due to higher base prices or declining market conditions. If the situation persists, company may be forced to reduce base prices further and re-schedule the e-auctions. Most likely, the company will conduct the re-auction in 1st week of December.
Result of OMC iron ore e-auction held on 9 Nov’15
| Mines | Size (mm) | Fe (%) | Base Price | Quantity offered | Quantity Sold |
| Barpada Kasia (Barbil) | 10-40 | 62 | 2,310 | 16,000 | – |
| -10 | 62-60 | 1,310 | 13,000 | – | |
| Gandhamardan | 10-180 | 65 | 2,000 | 20,000 | – |
| 10-40 | 62 | 2,350 | 70,000 | — | |
| -10 | 62-60 | 1,250 | 50,000 | – | |
| Kurmitar (Koira) | 10-40 | 62 | 2,010 | 260,000 | 170,000 |
| -10 | 56-52 | 900 | 40,000 | – | |
| -10 | 62-60 | 1,150 | 100,000 | – | |
| Daitari | 10-40 | 62 | 2,200 | 150,000 | 50,000 |
| -10 | 64-62 | 1,500 | 60,000 | – | |
| Total | 220,000 | ||||
Quantity in MT
Base & bid prices in INR/MT on ex-mines basis; inclusive of royalty
Source: SteelMint Research
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