Monthly Archives: November 2013

Auction

India: Iron ore E-Auction for Mines and Stockyards in Karnataka

Iron ore E-auction for various mines and stockyards located in the states of Karnataka on 06 Dec, 2013. Two auctions are going to take place on same day for various mines.

MSTC (Metal & Scrap Trading Corporation Limited) is conducting the bidding process. The total quantity of Iron ore offered for sale is 372,000 MT of which 67% material offered in auction are Lumps.

Auction 1 will commence at 13:00 HRS IST and conclude by 15:00 HRS IST.

Auction 2 will commence at 15:00 HRS IST and conclude by 17:00 HRS IST

The Inspection of material for both the auction will take place between 30.11.13 to 05.12.13

Total Iron ore offered for sale:

Iron ore Lumps: 252,000 MT

Iron ore fines: 120,000 MT

Royalty 10%, VAT 5.5% (on auction price and royalty) FDT 12% are applicable

The total quantity of Iron ore offered by other mines and stockyards in October E-auction is about 4.2 MnT out of which they sold about 1.5 MnT of Iron ore. JSW is the largest buyer of Iron ore, purchased 1 MnT of Iron ore from other mines. 74% of Material purchased by JSW Steel Ltd is ROM the average grade of ROM purchased in large quantity by JSW Steel was of Fe 40% grade.

 

 

 

 
MCL

MCL Operations Abort in Seven Mines

Mahanadi Coalfields Limited (MCL), a unit of state-run Coal India Limited, mining operations and transportations has been aborted over the local violence because of job cuts.

A contractor has involved its own workers instead of engaging local workers. The local workers protest created disturbance in the area which converted in to mob violence.

The protesters forcibly shut mines. Transportation infrastructure also suffered a lot as railway track has been wrecked by protesters.

MCL supplies Coal to several power companies in South India and Odisha, including the state power utility NTPC, Talcher Thermal Power Station and aluminium maker NALCO (National Alluminium Company Limited).

The production and transportation activities were shut down leading to severe impact on the major power producer NTPC, as they have already closed the operations in two of its 5X600 MW power plant. If the Coal supply did not resume, NTPC need to shut down the remaining units too, NTPC official said.

Owing to continuous protest and operations shut down since 8 Oct, 2013 MCL is losing around 30,000 MT daily Coal productions. However the seven Coal mines in Talcher Coal Fields have the production of about 0.2 MnT Thermal Coal daily which closed from Thursday.

Inspite of closed operation, MCL managed to transport about 17-18 racks of Coal on Thursday, and it had to halt operations at seven Coal mines in the Talcher Coal fields Friday due to prevailing law and order situation.

In FY14, till October MCL has produced around 55.9MnT of Coal against target of 61.1 MnT. MCL accounted 65 MnT of Coal offtakes against 66.6 MnT target in FY14 till October.

 

India: MSPGCL‘s Auction for Sale of Rejected Coal

Maharashtra State Power Generation Co Ltd, (MSPGCL) is the second highest power Generation Company after NTPC. It is inviting bid for sale of Rejected Coal lying at Khaperkheda (Nagpur) Maharashtra.

Delivery: Total quantity will be delivered in 20 equal installments.

Quantity: Total quantity available in two lots:

Lot no.1: 25,000 MT

Lot no.2: 25,000 MT

Important Times & Dates:

Due date: before 15.00 hrs IST on 13 Dec, 2013

Auction date: 16 Dec, 2013

Note: Actual quantity of Coal Mill Reject may vary to the extent of +/-5%

 
Orissa Mining Corp

India: OMC Chrome Ore E-auction for 66,000 tons on 3rd Dec

OMC’s (Orissa Mining Corporation) chrome ore auction for about 66,000 tonnes on 3 December 2013. OMC sells chrome ore through E-auction process, in which 70% is reserved for units located with in Odisha and rest 30 percent for units located outside Odisha.

The Odisha Mining Corporation (OMC) will conduct its e-auction for sale of 66 thousand tonnes of various grades of Chrome ore on 3rd of December 2013.

Out of the total 66,000 tonnes of Chrome ore there are 56,200 tonnes of friable ore and 9,800 tonnes of concentrated ore. The 56,200 tonnes of friable ore include 7,800 tones of the +54 grade and 9,000 tones of 52-54 grades.

The base price for the friable 54+ grade has been fixed at INR 12, 045/MT (USD 191) and for 52-54 it has been fixed at INR 11,599/MT (USD 184)

Similarly out of the 9,800 tones of Chrome concentrate 5,700 tones are of 40-38 grade and 3,800 tonnes are 44-42 grade. The base price for 40-38 grade has been fixed at INR 7,676/MT (USD 121) and for 44-42 it has been fixed at INR 8,443/MT (USD 134).

In last E-auction, ore prices had gone up by almost 30 percent for units located outside Odisha.

Results of Last Auction held on 30th October

 

INSIDE STATE

OUTSIDE STATE

GRADE

PRICE (INR/MT)

GRADE

PRICE (INR/MT)

54+

14,354

54+

18,954

52-54

13,315

52-54

14,015

48-50

12,992

50-52

12,771

46-48

9,313

48-50

12,192

44-46

8,434

46-48

12,192

 

44-46

9,434

 

CONCENTRATED

GRADE

PRICE(INR/MT)

38-40

8,582

42-44

8,506

46-48

11,061

 

ALLOCATIONS

INSIDE STATE

OUTSIDE STATE

COMPANY

QUANTITY (in MT)

COMPANY

QUANTITY (in MT)

JSL

14,900

Rohit Ferro

4,200

VISA

11,000

Shyam Ferro

1,500

Rohit Ferro

8,100

   

Shyam Metalics

6,700

   

Source: OMC, Market Traders

 
coal

Miners Backing their Productions by Developing Infrastructures in Mozambique

Rio Tinto Coal Mozambique (RTCM) transported a record breaking Coal in the month of October and scaled up its Coal production capacity.

RTCM, a subsidiary of global mining major Rio Tinto, last week reported to media that it had set a new monthly record for the transport of Coal. Transport was from its Benga mine located in Tete province to the Port of Beira, in Sofala province. The quantity of Coal involved came to 95,000 MT and it was carried by 38 trains, running on the Sena railway lines. The increased amount of Coal dispatched from Benga was the result of “continuing improvements which are introduced on the Sena lines”, RTCM Coal Supply Chain Director Carlos Galego told to media on 28 Nov, 2013.

Earlier towards the end of the October, company reported that it had acquired four new locomotives and 110 wagons to haul Coal from Benga to Beira. Of these, two locomotives and all the wagons had already been delivered, with the remaining two locomotives expected this month. “This new rolling stock is intended to complement the improvements which are being introduced on the Sena line and it will increase the transport capacity for RTCM Coal,” he stated.

The carrying capacity of the 575 km long Sena line is being increased from its current 6.5 MnT per annum to 20 MnT per annum. The whole project is expected to be completed in February 2015.

In addition to the Benga operation, RTCM holds a 65 per cent share (the remaining 35% belonging to Tata Steel of India), which produces both Coking and Thermal Coal, RTCM was awarded a mining license for its wholly owned Zambeze project in August. It also has an exploration license for its 100 per cent held Tete East project. (The Zululand Anthracite Colliery, in South Africa, also falls under RTCM, which holds 74% of the operation.)

Meanwhile in its production report for the Q3 of this year, Brazilian major miner Vale reported that the ramping-up of production at its Moatize mine, in Tete, was being impeded by the limitations of the Sena line and Beira port.

Moatize Phase 1 has a nominal capacity of 11 MnT per annum. Actual output during the Q3 was 1.2 MnT, composed of 706,000 MT of Coking Coal and 462,000 MT of Thermal Coal. This was actually lower than the figure for the second quarter, which was 1.3 MnT (composed of 849,000 MT of Coking Coal and 448,000 MT of Thermal Coal). The decline in metallurgical Coal output in the third quarter, in comparison to the second quarter was 16.8 per cent, but thermal Coal saw a rise of 3.2 per cent. For the first nine months of this year, Moatize metallurgical coal output was 6.4 per cent higher than for the same period last year, while that for thermal coal rose by 23 per cent.

Nevetherless, work continues on the development of Moatize Phase 2, which is expected to be commissioned in the second half of 2015. To date, USD 734 million of capital expenditure (capex) has been made for Phase 2, of which USD 278 million was during the first three quarters of this year. Total capex for Phase 2 for this year is programmed to be USD 381 million. The total cost for the complete development of this next phase of Moatize is budgeted at just over USD 2 billion.

 
Orissa Mining Corp

India: OMC’s Seized Materials Tender for Sale

Odisha Mining Corporation Limited (OMC Ltd), a state Government undertaking company invites tenders for sale of various grades of Seized Iron ore, Manganese ore & Coal available at different locations under Joda Mining Circle, Dist: Keonjhar & Koira Mining Circle, Dist: Sundargarh & Cuttack Mining Circle, Dist: Cuttack.

Material Details:

Lot No.

Description of the Material

Quantity (MT)

JSO -15 (B) Manganese   ore   (Mixed  with iron ore of 27. 85% Fe)

246.4

JSO -16 (B) Manganese  ore

1649.6

JSO -29 (B) Manganese  ore

204.4

                                                                                                            Total                    2100.5

JSO -24 (B) Iron ore Lump

472.71

JSO -30 Iron ore Fines

150

JSO -31 (B-1) Iron ore Fines

7004.9

JSO -32(B) Iron ore Fines

8407.5

JSO  -35 Iron ore (Sized)

349

JSO-36 Iron ore Lump

778

JSO –38 Iron ore Fines

3200

JSO – 39 Iron ore (Sized)

3077

JSO – 40 Iron ore Fines

150

K-8 Iron ore Fines

86

K-9 Iron ore Fines

476.0

CTC-1 Iron ore Fines

412.88

                  Total                  24564.1

JSO – 41 Coal

279.84

                                                               Total

  279.8

Total Quantity:
1.         Iron ore: 24564.1 MT (approx.)
2.         Manganese ore: 2100.6 MT (approx.)
3.         Coal: 279.8 MT (approx.) 

General Conditions:

  • Iron ore lessees are not eligible to participate in this tender
  • The buyer shall carry out loading and transporting of materials and comply strictly under all provisions of Mines Act.

Important Time & Dates:

  • Bid receipt due date: 13.00 hrs IST on 10 Dec, 2013
  • Bid opening date: 15.00 hrs IST on 10 Dec, 2013

 

 

India: High Carbon Ferro Manganese being offered at INR 56,000-56,500 /MT

Domestic High Carbon Ferro Manganese market situation was generally bright this week, as sellers witness better demand.

Indian High Carbon Ferro Manganese market demand increases marginally which leads to stability in prices. Current prices of High Carbon (HC) Ferro Manganese in Raipur are INR 56,000 (70% Mn) and INR 60,500(75% Mn). In Durgapur, HC Ferro Manganese is being offered at INR 56,500. A trader looking at market condition said “There doesn’t seem to be any clear direction except for it remaining stable for now”.

Export Market

Export market remains dormant as demand for Indian origin High Carbon Ferro Manganese remains low. Export offers for HC Ferro Manganese 70% min. is being offered around USD 880-890 /MT FOB India (East-coast), and HC Ferro Manganese 75% min. is being offered at USD 950 /MT, FOB India (East-coast). Market sources believe that prices would remain at these levels over the next few weeks as market is witnessing fewer inquiries from buyers.

 

SteelMint learnt from market sources that demand for High Carbon Ferro Manganese should increase in the near future as market players expect reasonable demand from companies like JSPL and SAIL. It is to be seen whether this has an effect on the offer prices as in the current market scenario most end users prefer Silico Manganese over Ferro Manganese.

Exchange Rate : 1 USD= INR 62.59

 

 

 

 
Wire

Raipur Wire Manufacturers Exclude Buyer’s Discount from Quoting Price of Wire Rod

Wire Rod manufacturers of Raipur have excluded buyers discount from the quoted price. They have made a price cut of INR 400/MT from last trade.

Yesterday manufacturers quoted 5.5 mm Wire Rod at INR 33,400/MT but today the quoted prices are INR 33,000/MT for the same product despite increasing prices of Ingot/Billet city.

According to a Wire Rod manufacturer based in Raipur – “Earlier we were giving discount on quoted prices but we have made a prices cut and there’s no discount on wires today. Earlier we would add INR 1,700/MT in 5.5mm Wire Rod’s basic price for 12 Gauge HB Wire but today onwards we are adding INR 1,800/MT for the same”, he further said.

Other Wires like Binding, GI and Barbed Wires prices are unaffected from last trade in city.

Indian Wire prices (in INR/MT) as on date 29-Nov-2013

Particular

Item

Size

Price (Basic)

Price#(All Tax)

Change

W-O-W

M-O-M

Raipur

Wire Rod

5.5 MM

33,400

39,400

–  400    

   0    

+  1,200    

Binding Wire

20 Gauge

38,800

45,800

   0    

+  150    

+  1,850    

HB Wire

12 Gauge

35,200

41,500

–  300    

+  100    

+  1,300    

Barbed Wire

12×12 Gauge

41,100

48,500

   0    

+  400    

+  2,100    

GI Wire

12 Gauge

39,400

46,500

   0    

   0    

+  1,600    

Daily Assessment
Excise Duty @ 12.36% ;VAT as applicable
# Prices including all taxes

 
Mill Scale

Indian Mill Scale Exporters keep Offers Unchanged

Mill ScaleIndian Mill Scale exporters keep their offers at similar levels; Current offers prevailing in the range of USD 108-112/MT FOB India (in bulk)

Indian Mill Scale exporters have kept their offers at similar levels to Chinese buyers this week. Current offers are hovering at around USD 108-112/MT FOB India and around USD 132-135/MT CFR China for grade 68/70% Fe.

According to trade sources last deal of around 16,000 tonnes was done at around US$ 108/MT  FOB Chennai (in bulk) in the month of November.

Mill scale is a by product generated during re-rolling process and used by pellet and blast furnaces because of high iron content. Indian exports of Mill Scale have gone up recently as it does not attract any export duty or differential freight charge by railways, unlike iron ore.

Trade Wise

  • Indian exporters offering Mill Scale of grade 68/70 Fe at around USD 132-135/MT CFR China.
  • Last deal of 16,000 tonnes was heard done from Chennai at USD 108/MT on FOB basis.
  • In domestic market Mill Scale prices are hovering in the range of INR 6,100-6,200/MT delivered Vizag port.
  • Iron Ore fines of grade 63% offered at around INR 4,700/MT delivered Vizag port.
  • Iron Ore fines of grade 55% hovering at INR 3,100-3,200/MT delivered Vizag port.
  • Odisha miners offering 63% Fe Iron fines at INR 1,800-2,200/MT Ex Mines (Incld Royalty).
 
Pig iron

China: Spot Iron ore Price remain Firm

  • Iron ore price rigid amid of fragile market condition
  • Dalian commodity exchange up by 0.3%
  • Iron ore export increases from Paradip port in November

China:

Seaborne Spot Iron ore prices remain firm since last one weak with some enquiries and trading activity seen between USD 135-137/MT CFR China. Iron ore price getting support at this price level, as the Iron ore market was stable since last 10 days.

SteelMint assessed that 63.5/63 Iron ore price on 28 Nov, 2013 remains firm at USD 136/MT CFR China. Australian 61.5 PB Fines unchanged at USD 135/MT CFR China.

Restocking of Iron ore by Steel mills is being expected in the month of December before the weather gets colder, so fall in Iron ore prices less expected. Iron ore stocks at major ports in China are increased by 1.5 MnT to 85 MnT which is highest stock level at port since December 2012.

Dalian commodity index up by 0.3% to Yuan 939 for the most traded Iron ore contract in May. Shanghai Steel Rebar Future is down by 0.13% to Yuan 3650 because of weak steel demand. Hebei Group (Yearly production 42 MnT) cut their Steel and Iron making capacity by 11 MnT.

Iron ore miner Rio tinto sold 170,000 MT PB Fines at USD 135.3 for December shipment. Iron ore trader at Shandong port sold 61% PB Fines at RMB 910/MT. Billet EXW price in Tangshang is rose by RMB 10 to RMB 3010 since 26 Nov, 2013.

USD 1= Yuan 6.0927

India:

Iron ore export in November (till 27) from Paradip port is increased by 134% and 14.5% from Vizag port which is supported by rupee depreciation against Dollar. Iron ore export was decreased by 70% for Paradip port in the month of October because of Cyclone Phailin.