India: OMC to auction 687,000 t of iron ore lumps on 31 Jul'21
State-owned Odisha Mining Corporation (OMC) has scheduled an e-auction for iron ore lumps on 31 Jul’21. The auction is being conducted for 687,000 t of material. Th...
State-owned Odisha Mining Corporation (OMC) has scheduled an e-auction for iron ore lumps on 31 Jul'21. The auction is being conducted for 687,000 t of material. The base price has been increased by up to INR 2,860/t as against the price at the last e-auction on 2 Jun.
However, the base price remains lower by around INR 1,000/t against the bid price at the last the e-auction.
SteelMint's index for Odisha iron ore lumps (5-18 mm, Fe 63%) stood at around INR 14,250/t (inclusive of royalty, DMF and NMET) on 24 Jul.
With 13.3 mn t of iron ore production in FY'21, OMC had emerged as the leading merchant miner in Odisha. The state PSU miner could also become the largest iron ore producer in Odisha with a consolidated capacity of 34 mn t/year, as per SteelMint estimates, especially after it bagged key iron ore mines following months of non-production subsequent to the Odisha auctions in 2020.
OMC reserves about 30% of its annual production for auctions, with the rest earmarked for long-term linkage customers.
At the last iron ore e-auction conducted by the miner on 2 Jul for 619,000 t of iron ore lumps, the bids received hit record-high levels and were booked at an average price of 42.8% over the set base price.
Moreover, the miner had held an auction for 689,000 t of iron ore fines on 22 Jul, after reducing the total material on offer and increasing the base price by INR 2,550/t compared with the previous e-auction on 8 Jul'21.