India: OMC Iron Ore E-Auction Fetch Good Response; 78% Material Booked
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Odisha's state-owned miner- Odisha Mining Corporation (OMC) had scheduled its iron ore e-auction today i.e. 03 Dec'18. Total quantity put under the auction was 345,000 MT iron ore Lumps. The material was from Gandhamardan, Daitari, and Koira mines. Traders were restricted to take part in this auction. The miner had cut base prices decreased by INR 400/MT against the previous e-auction conducted on 03 Oct'18.
The auction fetched good response with nearly 78% (270,000 MT) material getting booked. The entire quantity of Koira and Daitari got booked. Bids for lumps offered from Daitari mines observed an increase in bids by INR 250-350/MT to INR 4,400-4,450/MT against base price which was INR 4,100/MT. Lumps offered from Koira mines fetched bids in the range of INR 4,200-4,250/MT against base price INR 4,200/MT.
However, material offered from Gandhamardan mines received a dull response with some quantity remaining unsold.
Major takers in today's e-auction - Major parties that participated in today's e-auction and booked decent quantities were - MESCO, Monnet Ispat, JSPL, Jai Balaji, Maithan Ispat, and Aarti Steels.
Base price comparison of OMC Iron ore e-auctions-
| Mines | Size (mm) | Fe (%) | Base Price as on 03 Oct'18 | Bid Price as on 03 Oct'18 | Base Price as on 03 Dec'18 | Bid Price as on 03 Dec'18 | Quantity Offered (MT) | Quantity Sold (MT) |
| Gandhamardan | 10-40 | 62% | 4,100 | 4,100 | 3,700 | 3,700 | 105,000 | 30,000 |
| 10-180 | 65% | 3,400 | 3,400 | 3,000 | 3,150-3,200 | 15,000 | 15,000 | |
| Kurmitar (Koira) | 10-40 | 62% | 4,600 | 4,600-4,650 | 4,200 | 4,200-4,250 | 150,000 | 150,000 |
| Daitari | 10-40 | 62% | 4,500 | 4,550-4,600 | 4,100 | 4,400-4,450 | 75,000 | 75,000 |
| Total | 345,000 | 270,000 | ||||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
Odisha based merchant iron ore miners have cut iron ore offers to escalate buying interest amid falling semi-finished steel prices. 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.
