SteelMint: Odisha iron ore fines index stable albeit limited trade

SteelMint’s weekly Odisha iron ore fines (Fe 62%) index remained largely stable at INR 3,500/t ex-mines. Limited deals and lack of material availability kept prices firm.

SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,400/tonne (t), up another INR 300/t compared to the last assessment on 27 September. A sizeable volume of deals of around 64,000 t were concluded in this publishing window, and all were taken into consideration for index calculation.

Rationale:

• T1- there was not the deal we found for high grade Fe 62% fines and not considered for the index calculation. Therefore, 50% weightage was given to it.
• T2- SteelMint received ten (07) offers and indicative prices under T2 trade deals in this publishing window out of which nine (05) were taken into consideration and given 100% weightage. To check SteelMint’s iron ore assessment, pricing methodology and specification documents Click here.

That apart, two deals of around 200,000 t of fines (Fe 61%) and 2,000 t of lumps (10-40, Fe 63%) were heard concluded by a trader recently at INR 2,750/t and INR 4,600/t ex-mines, respectively, and both were take for lumps and and fines (Fe 60%) calculation.

Odisha iron ore prices:

Highlights from other states:

• Vedanta to auction150,000 t of iron ore fines from Karnataka: Vedanta has scheduled an auction for sale of around 148,000 t of iron ore fines (Fe57.5%) on 6 October from its A. Narrain mines in Karnataka’s Chitradurga district. The floor price for the auction was set at INR 1,325/t (excluding royalty, DMF and NMET charges).
• Over 150,000 t of iron ore booked at AM/NS auction from Odisha: AM/NS India had conducted an iron ore auction of 152,000 t from its Sagasahi mines in Odisha on 1 October. The entire quantity of 40,000 t of fines (Fe57.5-58.5%) was booked at INR 1,500-1,850/t while 96,000 t of lumps (Fe60.5-62.5%) was booked at INR 2,500-6,565/t. Another lot of 16,000 t of lumps (Fe 58.5%) was sold at INR 3,700-3,800/t. Prices are inclusive of royalty, DMF and NMET.
• Goa govt invites bids for grant of four iron ore mining leases: The Goa government has put up for auction four iron ore blocks, ending a decade long innings of uncertainty. These blocks, three in the north – a block in Bicholim, one in Sirigao-Mayem and one in Monte de Sirigao — and one at Kalay in South Goa are the first set of mines and will be followed by auctions at regular intervals according to senior officials in the state.