India: Low Grade Iron Ore Fines Lot Fetches Good Response in OMC Auction
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Odisha's state-owned miner- Odisha Mining Corporation (OMC) had scheduled its iron ore fines e-auction today (30th Apr'20). Out of 429,000 MT iron ore fines put to auction, low grade fines lot was for 40,000 MT. The entire quantity of low grade fines from Koira mines was booked and fetched bids higher by INR 250/MT over the set base price. Indian low grade fines export prices have remained supported on Chinese buying.
However, high grade material offered in the auction from Koira received flat bids i.e at base price of INR 1,200/MT for 7000 MT of ore while remaining 93,000 MT remained unsold.
The entire quantity of 199,000 MT iron ore from Gandhamardhan mines remained unsold. The total 90,000 MT offered from Daitari fetched bids at base price of INR 2,000/MT.
Price comparison of OMC iron ore e-auctions-:
| Mines | Size | Fe (%) | Base Price as on 20th Feb'20 | Bid Price as on 20 Feb'20 | Base Price as on 30th Apr'20 | Bid Price as on 30 Apr'20 | Quantity offered | Quantity sold |
| (mm) | (INR/MT) | (INR/MT) | (INR/MT) | (INR/MT) | (MT) | (MT) | ||
| Gandhamardan | -10 | 60-62 | 1,150 | 1,150-1,200 | 1,150 | - | 190,000 | - |
| -10 | 64-62 | 1,700 | - | 1,500 | - | 9,000 | - | |
| Kurmitar (Koira) | -10 | 62-60 | 1,700 | 1,700 | 1,200 | 1,200 | 100,000 | 7,000 |
| Fines | 58% | - | - | 750 | 1,000 | 40,000 | 40,000 | |
| Daitari | -10 | 64-62 | 2,200 | 2,450-2,500 | 2,000 | 2,000 | 90,000 | 90000 |
| Total | 429,000 | 137,000 | ||||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
The miner had reduced the base price of the ore by up to INR 500/MT against the last fines auction held on 20th Feb'20.
