India: OMC Defers Due Date of Iron Ore E-auction
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Odisha Mining Corporation has postponed the iron ore lump e-auction which was supposed to be held today (27th March). However, the auction due date is yet to be disclosed.
The miner has extended the dates for lifting iron ore by buyers from 29th Mar'20 to 7th Apr'20 in order to facilitate easy material movement in this tough situation.
The auction is for 475,500 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 475,500 MT, DR-CLO is 474,000 MT and remaining 1,500 MT is lump. The miner is yet to disclose the base price for the auction.
Amid lowered bookings Odisha based miners have reduced prices recently. Essel Mining decreased its offers by INR 400/MT for high grade iron ore lumps w.e.f 18th Mar'20. Serajuddin decreased lumps prices twice by around INR 1,000/MT in a week's time for 5-18 mm (Fe 63%) to INR 4,000/MT (ex-mines, including Royalty, DMF, & NMET). KJS Ahluwalia and Kaypee enterprices also reduced its iron ore lumps offer by INR 400-500/MT yesterday (19th Mar).
OMC iron ore e-auction details
| Mines | Size | Fe (%) | Base Price as on 30th Nov'19 | Bid Price as on 30th Nov'19 | Base Price as on 24th Jan'20 | Bid Price as on 24th Jan'20 | Quantity Offered |
| (mm) | (INR/MT) | (INR/MT) | (INR/MT) | (INR/MT) | (MT) | ||
| Gandhamardan | 10-40 | 62% | 2,300 | 2,350 | 2,650 | 2,653-2,681 | 204,000 |
| 10-180 | 65% | 1,750 | 2,200 | 2,100 | 2,380 | 1,500 | |
| Kurmitar (Koira) | 10-40 | 62% | 2,800 | 3,050 | 3,150 | 3,439 | 180,000 |
| Daitari | 10-40 | 62% | 2,800 | 2,850 | 3,150 | 3,150 | 90,000 |
| Total | 475,500 | ||||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
In the last lump e-auction held on 24th Jan'20, auction fetched aggressive participation with entire offered quantity getting booked at above set base price by up to INR 300/MT.
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.
