SteelMint’s weekly Odisha iron ore fines index (Fe 62%) fell further by INR 150/t w-o-w to INR 3,150/t ex-mines. With a few pellet makers having cut down their production capacity, iron ore fines bookings have remained slow.
The index dropped to almost a two-year low amid restricted trade activities.
Also, buyers seem to be awaiting Odisha Mining Corporation’s (OMC’s) iron iron ore e-auction which was postponed.
State-run OMC had scheduled an auction for iron ore fines and lumps for over 2.5 mnt on 17 June. The miner had decreased the base price for fines by up to INR 800/t and that for lumps by up to INR 1,500/t as against the last auction’s base price. As per latest updates received, the miner has postponed the auction and the base prices and quantity are likely to be revised.
Rationale:
- T1- One confirmed deal for high grade (Fe 62%) was heard for around 15,000 t at INR 3,000/t (ex-mine, including royalty, DMF and NMET). Therefore, 50% weightage was given in this index.
- T2- SteelMint received five (05) offers and indicative prices under T2 trade deals in this publishing window out of which three (03) were taken into consideration and given 50% weightage. To check SteelMint’s iron ore assessment, pricing methodology and specification documents Click here.
Odisha iron ore prices:
Highlights from other states
- Iron ore offers from Lloyds Metals, Maharashtra range-bound: The miner’s offers for lumps (5-18mm, Fe 63%) were recorded at INR 7,000/t FOR Raipur. Prices have remained largely stable against last week. Lloyds Metals is operating an iron ore mine, spread over an area of 348.09 hectare, in Surjagarh village in Gadchiroli district, Maharashtra. The mine has estimated reserves of 90 million tonnes (mnt). A Raipur-based sponge producer claimed to have booked 5,000 t of lumps at quoted offers this week.
- 40,000 t of iron ore lumps sold at Vedanta’s auction from Karnataka: In Vedanta’s auction for 140,000 t of iron ore on 16 June from its A. Narrain mines in Karnataka’s Chitradurga district, the entire quantity of 40,000 t of lump (6-40mm, Fe 60-62%) was booked at around INR 3,364-3,514/t (excluding royalty, DMF and NMET) as against the base price of INR 3,314-3,364/t. However, 100,000 t of fines failed to receive bids.
- NMDC to auction nearly 180,000 t of iron ore from Chhattisgarh: NMDC has scheduled two iron ore auctions from Chhattisgarh. The first auction is for 109,200 t of Fe 64%-67% (indicative) grade material from its Bacheli mines, while the second auction will see 67,200 t of Fe 64-65.5% (indicative) grade ore from the Kirandul mines going under the hammer. Both auctions are scheduled for 21 June and the material offered is DR-CLO, Baila lump, fines and ROM.
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