India: OMC Increases Base Price by Upto INR 600/MT in Upcoming Fines E-auction
...
Odisha Mining Corporation has scheduled its next iron ore fines e-auction on 20th Feb'20 for 389,000 MT iron ore fines. The base price for the auction is increased by upto 600/MT.
The base price for material offered from Gandhamardan increased by NR 150-200/MT, Daitari by INR 200/MT and Koira by INR 600/MT, against the base price of last e-auction held on 21st Dec'19.
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.
Price and Quantity of OMC iron ore fines e-auctions-
| Mines | Size | Fe (%) | Base Price as on 21st Dec'19 | Bid Price as on 21st Dec'19 | Base Price as on 20th Feb'20 | Quantity offered |
| (mm) | (INR/MT) | (INR/MT) | (INR/MT) | (MT) | ||
| Gandhamardan | -10 | 60-62 | 1000 | 1,000-1,050 | 1150 | 190,000 |
| -10 | 64-62 | 1500 | 1,500-1,550 | 1700 | 9000 | |
| Kurmitar (Koira) | -10 | 62-60 | 1100 | 1,650-1,700 | 1700 | 100,000 |
| Daitari | -10 | 64-62 | 2000 | 2,200-2,250 | 2200 | 90,000 |
| Total | 389,000 | |||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
In the last iron ore fines e-auction held on 21st Dec'19, the entire quantity of 352,000 MT was booked. Lots offered from Gandhamardhan mines received flat bids. However, bids fetched in Koira mines were higher by INR 650-700/MT over the set base price. Lots offered from Daitari received bids higher by INR 200-250/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.
