SteelMint’s weekly Odisha iron ore fines index (Fe 62%) increased by around INR 350/t w-o-w to INR 6,050/t ex-mines. Post OMC iron ore auction in Odisha prices have increased a bit owing to decent response amidst hike in sponge iron and semi-finished steel prices seen earlier during the week.
Rationale:
- T1- One trade was considered this week and considered under T1 and given 50% weightage. Odisha Mining Corporation (OMC) had booked around 0.95 mn t of material in iron ore fines auction on 18 Apr’22 out of a total quantity sold, only 20,000 t iron ore fines (Fe 62%) from Daitari considered for the calculation of index.
- T2- SteelMint received ten (10) offers and indicative prices under T2 trade deals in this publishing window. Seven (07) were taken into consideration and the rest given 50% weightage. To check SteelMint’s iron ore assessment, pricing methodology and specification documents Click here
However, later in the week, sponge iron and semi-finished steel prices fell on weaker buying sentiments. Steel production cuts on power outages, price clarity on coal, and weaker end-user buying sentiments have kept procurement of raw materials on the lower side. Hence, the market cooled down after OMC’s auction.
Pellet (Fe 63%) prices in Durgapur decreased to INR 10,400/t exw, down INR 350/t compared to the last assessment of INR 10,750/t on 19 Apr’22. SteelMint’s daily sponge iron, CDRI, index is assessed at INR 38,400/tonne, dropping by INR 550/t d-o-d.
OMC’s iron ore lump auctions keeps lump prices range-bound. Odisha Mining Corporation (OMC) had scheduled iron ore fines and lumps auction on 18 Apr’22 for 0.95 mn t and 0.66 mn t respectively. The entire quantity of both fines and lumps had been booked. The auction received a mixed response against the bid price of the last auction. One of the private miner from Odisha concluded around 10 rakes (around 38,500 t) for 5-18 lumps for Fe 62 grade at around INR 7,800-8,000/t (ex-mines, including Royalty, DMF and NMET) this week.
Odisha iron ore prices:
Highlights from other markets:
- NMDC to auction 168,000 t of iron ore from Chhattisgarh: NMDC has scheduled two iron ore auctions from Chhattisgarh. The first auction is for 100,800 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 the auctions are scheduled for 28 Apr’22. India’s largest merchant iron ore miner NMDC has raised iron ore list prices by up to INR 200/t for Apr’22 deliveries. Notably, royalty rates for Jan have come down compared with Dec’21.
- NMDC hikes base prices for Karnataka iron ore e-auction : State-owned NMDC increased iron ore base prices by around INR 100/t for both fines and iron ore lump for its advanced auction from the Donimalai mines. The current floor price of fines (Fe 62%) stands at INR 4,200/t, while for Fe 63% fines it is INR 4,387/t (basic, excluding royalty). Similarly, the base price of lump (Fe 64%) stands at INR 4,498/t (basic, excluding royalty).
Leave a Reply