India: 75% Material Booked in OMC Iron Ore Lump E-auction
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Odisha's state-owned miner- Odisha Mining Corporation (OMC) had scheduled its iron ore lump e-auction on 03rd June'19. Total quantity put under the auction was 425,000 MT iron ore lumps. Out of the total quantity nearly 75% (321,000MT) of material fetched bids.The material was from Gandhamardan, Daitari, and Koira mines. Traders were restricted to take part in this auction. The miner had increased prices by INR 100/MT against the base price of previous e-auction conducted on 04th Apr'19.
The entire quantity of material offered from Daitari got booked and few lots witnessed slight increase in bids by INR 50/MT above base price. Lumps offered from Gandhamardan and Koira also fetched flat bids or slightly higher by INR 50/MT.
Major buyers in the e-auction were JSPL, Aarti Steel, MESCO, MSP Sponge, Jindal SAW etc.
Bid price comparison of OMC iron ore E-auctions-:
| Mines | Size (mm) | Fe (%) | Base Price as on 04 Apr'19 | Bid Price as on 04 Apr'19 | Base Price as on 03 June'19 | Bid Price as on 03 June'19 | Quantity Offered (MT) | Quanity Sold (MT) |
| Gandhamardan | 10-40 | 62% | 2,850 | 2,850 | 2,950 | 2,950 | 135,000 | 130,000 |
| 10-180 | 65% | 2,150 | 2,150 | 2,250 | 2,250-2,300 | 15,000 | 15,000 | |
| Kurmitar (Koira) | 10-40 | 62% | 3,350 | 3,350 | 3,450 | 3,450-3,500 | 200,000 | 101,000 |
| Daitari | 10-40 | 62% | 3,250 | 3,250 | 3,350 | 3,350-3,400 | 75,000 | 75,000 |
| Total | 425,000 | 321,000 | ||||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
State-owned miner - Odisha Mining Corporation (OMC) is all set with iron ore production ramp-up plans for coming years to make up for expected supply disruption after March 2020 following lease expiry. OMC is planning to achieve 20 MnT iron ore output by FY21.
Odisha based major merchant miners have raised iron ore offer's twice in a month's time.
OMC has achieved an increase in its iron ore production almost nearer to three-time for Apr'19 to 1.39 MnT as against 0.51 MnT in last month.
