India: OMC Hikes Base Price by INR 350/MT for Upcoming Iron Ore Lump E-auction

Odisha Mining Corporation has scheduled its next iron ore e-auction on 24th Jan’20. The auction will be conducted for 520,000 MT iron ore lumps and the material put under the hammer is from Gandhamardan, Daitari and Koira mines. No traders shall be allowed to take part in the e-auction.

Out of the total quantity of 520,000 MT, DR-CLO is 515,000 MT and remaining 5,000 MT is lump.

Miner has increased the base price of lumps by INR 350/MT from all its mines against the base price of last e-auction conducted on 30th Nov’19.

The base price for lump ore offered from Koira and Daitari mines increased to INR 3,150/MT each. The price for material offered from Gandhamardan ore picked up to INR 2,650/MT for CLO and at INR 2,100/MT for lump ore.

Almost all the miners from Odisha increased iron ore fines and lumps offers in the last one month, fines by around INR 600-700/MT and in lumps around 1,000-1100/MT (Ex-mines). If market sources are to be believed, few major miners have already made aggressive bookings in last month’s as steel mills were actively restocking material ahead Mar’20 lease expiry. Also few mines are heard to have achieved EC limits for this fiscal. Hence, amid tight material availability miners are raising offers.

OMC iron ore e-auction details

 Mines  Size  Fe (%) Base Price as on 30th Sep’19 Bid Price as on 30th Sep’19 Base Price as on 30th Nov’19 Bid Price as on 30th Nov’19 Base Price as on 24th Jan’20 Quantity Offered 
(mm) (INR/MT) (INR/MT) (INR/MT) (INR/MT) (INR/MT) (MT)
 Gandhamardan  10-40 62% 2,600   2,600 2,300 2,350 2,650 270,000
 10-180 65% 1,900 2,100-2,150 1,750 2,200 2,100 5,000
 Kurmitar (Koira)  10-40 62% 3,100 3,100 2,800 3,050 3,150 125,000
 Daitari  10-40 62% 3,000 3,000 2,800 2,850 3,150 120,000
 Total 520,000

Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research

In the last lump e-auction held on 30th Nov’19, auction fetched aggressive participation with entire offered quantity getting booked at above set base price.

Odisha Mining Corporation (OMC) has completed public hearing for capacity enhancement for both Daitari and Koira mines, SteelMint learned from market sources. Also, the EC enhancement is in the process of approval. EC limit at Daitari mines is proposed to be increased to 6 Mnt pa from current EC of 3 Mnt pa. On similar lines, EC limit at OMC’s Kurmitar mines is proposed to be increased from current 2.4 MnT pa to 6 MnT pa.

 

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