SteelMint’s weekly index for Odisha iron ore fines (Fe 62%) was assessed at INR 9,100/t (ex-mines, including royalty, DMF and NMET). The index decreased by around INR 500/t against the assessment conducted last week. Although Odisha-based merchant miners have not lowered offers, the market expects some price correction next week.
According to sources, private merchant miners in Odisha are likely to announce iron ore prices next week. Some sources highlighted that there were chances of offers softening following the decline in bids at OMC’s iron ore fines auction. OMC’s auction for over 1 million tonnes (mn t) of iron ore from its Gandhamardan, Daitari, Koira, Jilling, Tiring Pahar and Guali mines saw the entire quantity of 1.06 mn t getting booked, although the bids dropped sharply by INR 1,100-1,950/t ($15-26/t) compared to the previous auction held in May.
Bids at OMC’s auction were passive due to a drop in pellet and sponge iron ore prices that led steel plants to cut production. A few major buyers at the previous e-auction, such as Brahmani River Pellets Limited (BRPL) and Atibir Industries, did not participate in the latest auction, as per SteelMint reports.
Recent trade and rationale:
- OMC’s deal from the Daitari iron ore mine was concluded this week and considered under T1 trade, being accorded 50% weightage in the index calculation for Fe 62% fines. Other lots were not taken into consideration as they were of Fe 61% or lower grades.
- SteelMint received eight (08) offers, indicative prices under T2 trade in this publishing window of which seven (07) were taken into consideration and given 100% weightage. To check out SteelMint’s iron ore assessments, pricing methodology and specification documents Click here
SteelMint’s index for iron ore lump (5-18mm, Fe 63%) stands stable at INR 14,350/t ex-mines, inclusive of royalty, DMF & NMET.
OMDC clearing out old stocks from Bhadrasahi mine: The Orissa Minerals Development Company Limited (OMDC), a subsidiary of Rashtriya Ispat Nigam Limited (RINL), recently dispatched the first consignment of iron ore after 11 years of dormancy. However, SteelMint has learnt from reliable sources that the company is clearing out old stocks lying at the pithead. The stocks being cleared are only from the Bhadrasahi iron ore and manganese mine. The inventory lying at the other two mines, Bagiaburu (iron ore) and Belkundi (iron ore and manganese), are “not much”, sources informed.
Chhattisgarh: NMDC cuts iron ore prices by INR 200-230/t for Jul’21 deliveries
India’s largest government-owned merchant iron ore miner, NMDC, has cut iron ore prices for Jul deliveries by INR 200-230/t ($3), SteelMint learnt from credible sources.
Bids fall by INR 200/t in recent Karnataka e-auction by private miners.
In an e-auction from Karnataka held on 6 Jul’21, out of the total quantity of 564,954 t on offer, 274,999 t was booked. Key highlights of the auction:
- Orissa Metaliks was the largest buyer at 48,000 t followed by JSW Steel at 44,000 t.
- Iron ore lumps (Fe 66%) offered by Ramanadurga received bids at INR 7,459/t as against INR 7,659/t in the last e-auction held on 24 Jun. Prices mentioned are basic.
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