India: OMC Cuts Iron ore Base Price for Upcoming Iron Ore Lump E-auction
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Odisha Mining Corporation has scheduled its next iron ore lump e-auction on 03 Dec'18, base prices decreased by INR 400/MT against the previous e-auction conducted on 03 Oct'18.
Odisha Mining Corporation (OMC) - a state-owned miner is to conduct next e-auction for 345,000 MT iron ore CLO and lump on 03 Dec'18. 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, 230,000 MT is DR-CLO and remaining 15,000 MT is lump ore.
Odisha based merchant miners were facing narrowed buying interest following which they were giving quantity discounts to stimulate the buying interest. Recently, the largest merchant miners have slashed iron ore prices to enhance the buying interest.
SteelMint learned that Odisha current trade price for Fe 63% fines is around INR 2,300-2,400/MT and 5-18 mm (Fe 65%) around INR 5,100/MT (Ex-mines price, including Royalty, DMF & NMET). However, miners are giving discounts further on bulk purchases.
Price comparison of OMC iron ore e-auctions-
| Mines | Size (mm) | Fe (%) | Base Price as on 03 Aug'18 | Bid Price as on 03 Aug'18 | Base Price as on 03 Oct'18 | Base Price as on 03 Dec'18 | Quantity (MT) |
| Gandhamardan | 10-40 | 62% | 3,500 | 3,500 | 4,100 | 3,700 | 105,000 |
| 10-180 | 65% | 2,700 | 2,900-2,950 | 3,400 | 3,000 | 15,000 | |
| Kurmitar (Koira) | 10-40 | 62% | 3,800 | 3,850-3,900 | 4,600 | 4,200 | 150,000 |
| Daitari | 10-40 | 62% | 3,800 | 3,950-4,000 | 4500 | 4100 | 75,000 |
| Total | 345,000 | ||||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
Iron ore production of state-owned miner- OMC marked a significant rise to more than five folds at 0.73 MnT in Oct'18 as against 0.14 MnT in Sep'18. This is a significant improvement after the monsoon season.
