- Odisha based key merchant miners like – Serajuddin, Rungta and Essel raised offers by upto INR 1,700/t
- OMC’s iron ore fines auction received bids higher by over 50% against the base price
- SAIL resumes iron ore auctions from Odisha
- NMDC raised iron ore prices in Chhattisgarh and Karnataka
SteelMint’s weekly index for Odisha iron ore fines (Fe 62%) has moved up sharply by INR 1,700/t to INR 9,300/t (ex-mines, including Royalty, DMF & NMET) in the recent deals concluded. Odisha-based major merchant iron ore miners like Serajuddin, Rungta Mines Essel Mining have raised offers by INR 1,100-1,700/t this week following surge in bids in OMC’s auction.
Odisha’s state-owned miner- Odisha Mining Corporation (OMC) had scheduled an iron ore e-auction on 10th May’21 for 1.37 mn t iron ore fines. The entire quantity put up for auction was booked with bids increasing by upto INR 2,750/t (over 50%) against the set base price. The miner had increased the base price by upto INR 1,880/t against the last e-auction held on 10th Mar’21.
Recent trades & rationale:
- An Odisha based miner has concluded a deal for 150,000 t fines (Fe 63%) at around INR 9,500/t (ex-mines, including Royalty, DMF and NMET) this week.
- In another deal confirmed by a steel maker, around 50,000 t fines (Fe 62%) has been booked at INR 9,300/t (ex-mines, including Royalty, DMF and NMET). Both the deals have been considered for index calculation.
- Out of the lots auctioned by OMC, one lot has been considered for index calculation as others were not falling under methodology. Total four deals were reported but three were considered for T1 trade after normalizing for publishing index grade Fe 62% and given 50% weightage.
- SteelMint has also received Thirteen (13) offers, indicative prices under T2 trade in this publishing window and twelve (12) were taken into consideration and given 50% weightage. To see SteelMint’s iron ore assessments, pricing methodology and specification documents Click here
An Odisha based trader has booked around 12,000 t iron ore lumps (5-18mm, Fe 63%) at INR 11,100/t (ex-mines, including Royalty, DMF and NMET) towards the mid of this week. However, post this deal offers increased sharply by around INR 1,500-1,700/t.
SAIL resumes iron ore auction from Odisha – Govt-owned steelmaker-Steel Authority of India Ltd (SAIL) conducted an auction on 13 May’21 from its Bolani mines in Odisha. 1,40,000 t iron ore dump fines (Fe 60%) were put up for auction today. Entire material put to auction received bids at INR 7,390/t (ex-mines, including Royalty, DMF, NMET and additional premium as per MMDR Act), SteelMint learned from sources. The miner has resumed auctions after a gap of around 1.5 months. No auctions were held in April due to confusion regarding payment of additional amount as envisaged in the MMDR Amendment Act, 2021.
Odisha iron ore prices:
Chhattisgarh: NMDC hikes iron ore price by up to INR 1,500/t ($20)
India’s state-owned iron ore miner National Mineral Development Corporation (NMDC) has announced a price hike of 30% in fines and 10% in lumps w.e.f 12 May. Increase in Odisha prices, supported steel prices, tighter domestic ore availability and global iron ore price hike have lifted NMDC offers.
FOR prices in INR/t, excluding Royalty and other taxes
Karnataka: NMDC raises base price in recent auction
NMDC Donimalai mines recently conducted an iron ore e-auction on 13th May’21 and booked an entire quantity of 600,000 t iron ore put to auction. JSW Steel Limited remained the largest buyer at 256,000 t of iron ore followed by BMM Ispat Ltd at 132,000t. The bids received by iron ore fines Fe 59% increased to INR 4,605/t as against INR 3,743/t and lump prices increased to INR 6,348-6,618/t as against last auction at INR 5,755/t conducted on 16th Apr’21.
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