India: OMC cuts base price up to INR 800/t for upcoming iron ore fines e-auction

State-run Odisha Mining Corporation (OMC) has scheduled an auction for iron ore fines and lump on 19 May'22. Around 876,000 t of iron ore lump and 1.23 mnt of fines will be put up for auction from OMC's mines in Odisha.

The miner has decreased the base price for fines up to INR 800/t and for lump by up to INR 450/t as against the last auction on 18 Apr.*

SteelMint's weekly Odisha iron ore fines index (Fe 62%) fell by INR 100/t w-o-w to INR 5,550/t ex-mines on 14 May. Low demand and declining pellet and sponge iron prices have put pressure on Odisha iron ore prices and thus the index has slipped to a three-month low.

Pellet prices in Barbil have decreased sharply, as per SteelMint's assessment. The current assessment for pellets (Fe 63%) stands at INR 9,350/t exw Durgapur, down INR 650/t compared to prices a week ago.

SteelMint's daily sponge iron, CDRI, index was assessed at INR 35,950/tonne (t) exw Rourkela on 14 May. On a w-o-w basis, the index fell INR 550/t.

OMC produced 27 mnt of iron ore in FY'22 compared with just 13.06 mnt in FY'21. The state PSU miner has chalked up plans to increase iron ore capacity in the coming time.

OMC lumps prices:

OMC fines prices: