SteelMint’s weekly iron ore fines index down by INR 250/t ($3)

• Bids drop by INR 400/t in SAIL’s recent iron ore fines auction from Odisha, miners keep offers unchanged
• SAIL’s iron ore auction from Chhattisgarh mines fetched limited response
• NMDC lowers base price in Karnataka iron ore e-auctions by INR 500/t following price cut in Chhattisgarh

SteelMint’s index for Odisha iron ore fines (Fe 62%) has come down further by INR 250/t to INR 5,250/t (ex-mines, including Royalty, DMF & NMET). Prices have decreased owing to fall in bids in SAIL’s auction conducted yesterday. Odisha-based other merchant miners continue to keep offers unchanged but market sources are expecting a marginal price correction in the near term on increasing supplies from Odisha.

In a confirmed trade, SAIL booked 136,000 t iron ore fines (Fe 62.5%) via auction from its Odisha mines at INR 3,810- 3,830/t (loaded into rakes and excluding royalty, DMF & NMET) normalized with grade and another necessary requirement. Hence it was taken under consideration as T1 Trade and given 50% weightage in this index.

SteelMint has also received Nine (9) offers, indicative prices under T2 trade in this publishing window out of those seven (7) were taken into consideration and given 50% weightage. To see SteelMint’s iron ore assessments, pricing methodology and specification documents, Click here.

Odisha iron ore prices

• SAIL’s auction from Chhattisgarh mines receives a limited response – Steel Authority of India Ltd (SAIL) conducted an auction on 11th Feb’21 for 112,000 t iron ore fines (Fe 55-60.2%) and 48,000 t iron ore tailings from its Rajhara mines in Chhattisgarh. The auction fetched limited response as only 28,000 t iron ore fines (Fe 60.21%) lot fetched bids at INR 3,350/t (loaded into rakes including royalty). The bids fell by around INR 150/t against last e-auction conducted on 30th Jan’21.
• NMDC lowered prices by upto 12% for Feb’21- India’s state-owned iron ore miner – National Mineral Development Corporation (NMDC) has announced price cuts in iron ore for Feb’21. Prices have decreased up to 12% from its Chhattisgarh based mines. The miner has reduced the price for Baila fines and lump by around INR 600/t and INR 700/t for DR CLO. Last month, company’s fines had already hit an all-time high while lumps hit an eight-year high.
  
  FoR prices in INR/t, taxes extra
• NMDC lowers base price in Karnataka iron ore e-auctions – NMDC has lowered base price by around INR 500 ($7) for Feb’21 Karnataka iron ore e-auction, sources have confirmed SteelMint. The current floor price for fines (Fe 61.5%) stands at INR 3,475/t and that of lump (Fe 61.9%) is at INR 4,809 (basic, exclusive of Royalty, DMF & NMET). Decline in pellet and sponge prices have resulted in lowering of offers.
  NMDC Kumarswamy mines recently conducted an iron ore e-auction on 9th Feb’21. Out of the total 175,000 t put to auction 156,000 t iron ore was booked. JSW Steel bought 120,000 t iron ore in the auction followed by BMM Ispat Limited at 20,000 t. The bids in the auction fell by around INR 550/t. The iron ore fines Fe 61.5% prices booked at INR 3,475/t as against INR 4,015/t in last e-auction conducted on 28th Jan’21.