SteelMint’s index for Odisha iron ore fines has remained largely range-bound this week however index for lumps has come down by INR 100-150/t w-o-w. Odisha – India’s largest iron ore producing state recorded production of 9.43 mn t in Oct’20, up 20%, as against 7.82 mn t in Sep’20, according to the provisional data of the Odisha Govt. maintained by SteelMint. Trade sources highlighted limited trades in domestic market this week with buyers turning hesitant to book material at increased offers.
SteelMint’s index for Odisha iron ore fines (Fe 62%) index stood at INR 6,200/t (ex-mines, including Royalty, DMF & NMET). SAIL concluded an auction for 72,000 t iron ore fines (Fe 62.5%) from its Bolani mines in Odisha yesterday with bids at INR 5,540-5,550/t (loaded into rakes and excluding royalty). This has been considered as confirmed trade for index calculation after normalizing for grade and tax terms. Apart from this, SteelMint received seven offers, indicative prices in this publishing window. To see SteelMint’s iron ore assessments, , pricing methodology and specification documents, Click here
- Odisha’s leading miner – Odisha Mining Corp (OMC) has scheduled its next iron ore e-auction on 2nd Dec’20. The auction is being conducted for 910,000 t iron ore lump. The miner has increased the base price by upto INR 1,600/t ($22) against last auction’s base price held on 1st Oct’20.
- Odisha’s Serajuddin mines resumed iron ore sales after a gap of 8 months. Serajuddin is reported to have sold around 500,000 t of high grade iron ore fines last week, for the first time since the company managed to retain its mine in the auction conducted in Mar ’20. However, SteelMint learnt that the company is unlikely to offer significant quantities in the coming months. Serajuddin, like other new lessees operating auctioned mines, is seriously constrained by “stacking” issues.
- Chhattisgarh-: Steel Authority of India Ltd (SAIL) has booked 28,000 t iron ore fines (Fe 60.07%) from its Dalli mines in Chhattisgarh on 26th Nov through an e-auction at INR 4,800/t (loaded into rakes and excluding royalty), SteelMint learned from its sources. The bid price has increased by INR 630 as against the last e-auction held at Rajhara mines (Fe 60.2%) which fetched bids at INR 4,170/t.
- Karnataka- In the recent Karnataka iron ore e-action held on 25th Nov’20, 255,000t (208,000 fines and 47,000 lumps) iron ore received bids out of the total 311,000 t put to auction. JSW Steel ltd stood the largest buyer at 164,000 t. The bids in the auction increased upto INR 1,640/t.
- Goa-: In the recent released bid-sheet of 24th iron ore e-auction conducted by Goan govt on 10th Nov’20 for 3 mn t. Out of that 2.4 mn t was ROM, 0.6 mn t was fines and the rest 0.06 mn t was lump. Sri Zacarias Antao(Late) was the largest supplier at 120,000 t followed by Kunda R Gharse at 85,500 t and Emco Goa Pvt Ltd at 78,580 t.Vedanta remained the largest bidder in the auction at 0.49 mn t, followed by VM Salgaocar and Brother Private Limited at 0.14 mn t, and Dhanlaxmi Enterprises at 0.12 mn t.
- Imports – Southern India based steel mills have recently booked about 50,000 t iron ore lumps vessel from South Africa, sources have reported to SteelMint. The deal price is heard at around $135-140/t CFR Krishnapatnam port and the vessel is expected to reach by early Jan’21.
India iron ore prices-:
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