SteelMint’s weekly index for Odisha iron ore fines (Fe 62%) has moved down by INR 200/t to INR 7,600/t (ex-mines, including Royalty, DMF & NMET) in the recent deal concluded. However, there doesn’t seem a chance for any significant downward correction as material availability is still an issue, especially for high grade.
Rationale:
- One deal for 20,000 t fines (Fe 63%) has been concluded by a Odiaha based major miner at around 8,000/t (ex-mines, including Royalty, DMF and NMET) this week. Therefore, it was considered for T1 trade after normalizing for publishing index grade Fe 62% and given 50% weightage.
- SteelMint has received eight (8) offers, indicative prices under T2 trade in this publishing window and all were taken into consideration and given 50% weightage. To see SteelMint’s iron ore assessments, pricing methodology and specification documents Click here
OMC increases the base price by upto INR 1,880/t ($25) for upcoming iron ore auction: Odisha’s leading miner – Odisha Mining Corp (OMC) has scheduled its next iron ore e-auction for 1.38 mn t iron ore fines on 10th May’21. The miner has increased the base price by upto INR 1,880/t against the last e-auction held on 10th Mar’21.
Serajuddin and JSW hike lumps offer: Odisha-based major merchant iron ore mine Serajuddin & Co. has raised lump offers by INR 100/t from its Balda iron ore block w.e.f 8th May’21. The current offer price for lumps 5-18 mm (Fe 63%) is heard at around INR 11,000/t ex-mines (including Royalty, DMF & NMET) SteelMint learned from sources. JSW Steel has also raised iron ore lump offers by INR 200-300/t today. The current offer for Fe 10-40 mm (62%+ grade) lumps stands at INR 10,600/t ex-mines.
Odisha iron ore prices:
Chhattisgarh: 24,000 t iron ore fines booked in SAIL’s iron ore auction : Steel Authority of India Ltd (SAIL) conducted an auction on 06 May * for 40,000 t iron ore fines (Fe 56.3-58.1) from its Dalli/Rajhara mines in Chhattisgarh. They have received bids for 24,000t material offered at INR 2,750-3,460/t (Loaded, including Royalty, DMF and NMET). Market sources expect NMDC to revise prices shortly.
Bids remain stable in recent NMDC Kumarswamy iron ore e-auction: NMDC recently conducted an iron ore e-auction from Kumarswamy mines on 5th May’21 and booked the entire quantity of 183,000 t iron ore put to auction. JSW Steel Limited remained the largest buyer at 140,000 t iron ore followed by Kirloskar Ferrous Industries Ltd at 12,000t. The bids received by iron ore lumps Fe 60.09% stood stable at INR 5,392-5,402/t as against the auction conducted on 17th Apr’21.
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