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SteelMint: Odisha iron ore fines index up INR 650/t on limited offers for high-grade ore

SteelMint’s weekly Odisha iron ore fines (Fe 62%) index increased by INR 650/t to INR 6,200/t (ex-mines, including royalty, DMF and NMET) owing to tight availability ...

Fines/Lumps
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23 Oct 2021, 18:14 IST
SteelMint: Odisha iron ore fines index up INR 650/t on limited offers for high-grade ore

SteelMint's weekly Odisha iron ore fines (Fe 62%) index increased by INR 650/t to INR 6,200/t (ex-mines, including royalty, DMF and NMET) owing to tight availability of high-grade iron ore and limited offers from merchant miners in Odisha.

As per market sources, offers for fines (Fe 62%) from miners like Rungta and Essel Mining are at INR 6,500-7,000/t (ex-mines, including royalty, DMF and NMET). Due to shortage of iron ore in the merchant market prices are going up. Also no offers were heard from one of the key merchant miners -Serajuddin & Co. However, Fe 62% fines offers from SN Mohanty were heard around INR 5,500-5,600/t ex-mines.

Confirmed deals:

  • SAIL conducted an auction for 60,000 t of iron ore fines (Fe 62.5%) from the Bolani iron ore mines in Odisha on 20 Oct. Out of the total quantity offered, the company received bids for the entire 60,000 t at INR 5,850-5,900/t (loaded on to wagon, including royalty, DMF, NMET and the additional amount mentioned in the MMDR Amendment Act).

  • SAIL conducted an auction on 21 Oct for 88,000 t of iron ore fines (Fe 60.5%) from the Barsua iron ore mines in Odisha. Out of the total quantity on offer, SAIL received bids for 28,000 t at INR 5,200/t (loaded on to wagon, including royalty, DMF, NMET and the additional premium as per MMDR Amendment Act).

  • However, a few other deals were also concluded by traders and miners for around 120,000 t of Fe 60%/61% fines at INR 4,700-4,800/t (ex-mines, including royalty, DMF and NMET). However, these deals were not taken for the calculation of the index as the grades were lower than Fe62%.

Rationale:

  • A few deals were recorded but only SAIL deal for 80,000 t Fe 62.5% fines was factored into the price calculation as T1 trade. It was given 50% weightage in the index calculation for Fe 62% fines.

  • SteelMint received twelve (12) offers and indicative prices under T2 trade in this publishing window. Eleven (11) were taken into consideration and given 50% weightage. To check out SteelMint's iron ore assessment, pricing methodology and specification documents Click here

Market highlights from Odisha:

  • The Odisha government has re-scheduled the Teherai iron and manganese mine block auction, as per latest reports. The tender, floated on 22 Oct, will close on 6 Dec. The previous auction of the block was cancelled due to the total number of technically qualified bidders being less than three.

  • 'Five star' rated iron ore, manganese ore, bauxite and limestone mines will be allowed to increase capacity by 20% with public consultation instead of public hearing, as per a recent MoEF&CC circular.

NMDC to auction 298,200 t of iron ore from Chhattisgarh

India's largest iron ore miner, National Mineral Development Corporation (NMDC), has scheduled two iron ore auctions. The first auction is for 222,600 t of Fe 64%-67% grade material from the company's Bacheli mines, while the second auction will see 75,600 t of Fe 64%-65.5% grade ore from the Kirandul mines in Chhattisgarh going under the hammer. Both the auctions are scheduled for 27 Oct.

Recent Karnataka iron ore e-auction by private miners fetches dull response

Bids remained stable at the Karnataka iron ore e-auction conducted on 12 Oct by private miners. The auction fetched bids for 212,000 t of iron ore out of 601,990 t. Rai Bahadur Seth Shreeram Narasingdas Pvt. Ltd. remained the largest buyer at 44,000 t followed by Thakur Industries that booked around 36,000 t. Iron ore fines (Fe 66%) lot was booked at INR 6,000/t (basic, taxes extra), largely stable against the previous auction conducted on 5 Oct.

 

23 Oct 2021, 18:14 IST

 

 

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