SteelMint’s weekly index for Odisha iron ore fines (Fe 62%) increased by around INR 250/t to INR 9,150/t (ex-mines, including Royalty, DMF and NMET). Towards the middle of this week, key merchant miners such as Essel Mining and Rungta Mines raised offers by around INR 700/t.
Odisha iron ore lump prices hit an all-time high in OMC’s auction on aggressive
participation from JSPL, Tata Steel, Rungta and JSW Steel.
Key highlights:
- Odisha’s Essel Mining has raised offers for iron ore fines by INR 700/t and lump by INR 2,000/t from 4 Jun’21.
- State-owned Odisha Mining Corporation’s (OMC) e-auctionfor 619,000 t of iron ore lump was concluded at an average of 42.8% over the set base price and the entire quantity offered got booked. The state-owned miner had increased the quantity to be put under the hammer to 619,000t against 522,000 t declared on 25 May, as per SteelMint reports.
- One of India’s leading iron ore producers, OMC has applied to the Union Ministry of Environment Forests & Climate Change (MoEFCC) for expanding the annual production capacity of the company’s Guali iron ore mine in Odisha to 30 mn t per annum.
Recent trade and rationale:
- In a confirmed deal reported to SteelMint this week, a trader booked 40,000 t fines (Fe 62%) at INR 9,000/t, (ex- mines, including Royalty, DMF, NMET). The deal was considered for price calculation under T1 trade, and therefore, given the 50% weightage.
- SteelMint has also received eleven (11) offers, indicative prices under T2 trade in this publishing window and all were taken into consideration and given another 50% weightage. To see SteelMint’s iron ore assessments, pricing methodology and specification documents Click here
- Market participants highlighted that offers for lump (5-18mm) have increased to INR 13,500-14,500/t, exw. It seems buyers have turned active in restocking ore in anticipation of a shortage in availability considering the fact that a couple of key merchant leases are due to expire in Aug’21.
Odisha iron ore prices:
NMDC’s iron ore price revision awaited – Chhattisgarh-based sponge manufacturers are waiting for NMDC’s anticipated price revision for Jun’21. Steel Authority of India Ltd (SAIL) conducted an auction today for 24,000 t of iron ore fines from its Dalli mines in Chhattisgarh. The company received bids for the entire material on offer at INR 7,900/t (loaded, including Royalty, DMF, NMET and additional Royalty as per MMDR Amendment), as per sources. The material put under the hammer was of high grade – Fe 64.34% and Fe 64.66%.
- Bids remain stable in Karnataka e-auction by private miners: In the recent Karnataka e-auction held on 1 Jun, out of the total quantity of 658,000 put to auction, 116,000 t was booked. Rai Bahadur Seth Shreeram Narasingdas Private Limited was the largest buyer at 48,000 t. B. Rudra Gauda iron ore lump (Fe 55.3%) received bids at INR 3,995/t (basic) in line with the last e-auction conducted on 21 May.
- Jharkhand govt to auction old iron ore stocks from mines in Saranda region: The Jharkhand government has announced that it would start auctioning already-mined iron ore stocks lying at mine sites in the Saranda forest region of the mineral-rich state’s West Singhbhum district, SteelMint learnt from recent reports. As a first step in the auction process, old stocks of iron ore lying at the Ghatkuri iron ore mines and the Rajabeda mines in the hilly and forested Saranda region have been identified for sale for which e-tenders would be floated. Both the mines are registered under the name of Padma Kumar Jain of Chaibasa.
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