India: OMC Iron Ore E-auction Receives Bid Higher by Upto INR 500/MT
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Odisha's state-owned miner- Odisha Mining Corporation (OMC) had scheduled its iron ore fines e-auction yesterday (21st Oct'19). Total quantity put under the auction was 276,000 MT iron ore fines. Entire offered quantity was booked registering sharp increase over set base price.
Bids for Koira mines moved up by INR 450-500/MT over the set base price, however for Daitari & Gandhamardhan mines, bids increased by over INR 100-150/MT. As per sources, JSW Steel procured 24,000 MT iron ore fines from OMC's Daitari mines.
The material was from Gandhamardan, Daitari, and Koira mines. Traders were restricted to take part in this auction. The miner had reduced base prices by INR 100/MT against the base price of previous e-auction conducted on 12th Sep'19.
Price comparison of OMC iron ore E-auctions
| Mines | Size | Fe (%) | Bid Price as on 12th july'19 | Base Price as on 12th Sep'19 | Base Price as on 21st Oct'19 | Bid Price as on 21st Oct'19 | Quantity Offered | Quantity Sold |
| (mm) | (INR/MT) | (INR/MT) | (INR/MT) | (INR/MT) | (MT) | (MT) | ||
| Gandhamardan | -10 | 60-62 | 1,350 | 1,100 | 1,000 | 1,100-1,150 | 105,000 | 105,000 |
| Kurmitar (Koira) | -10 | 62-60 | 1,250 | 1,050 | 950 | 1,400-1,450 | 21,000 | 21,000 |
| Daitari | -10 | 64-62 | 2,450 | 2,100 | 2,000 | 2,100-2,150 | 150,000 | 150,000 |
| Total | 276,000 | 276,000 | ||||||
Bid prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
OMC iron ore production for the month of Aug'19 recorded at 30,496 MT, as against 464,693 MT in July'19.
OMC is all set with iron ore production ramp-up plans for coming years to make up for expected supply disruption after March 2020 following lease expiry. OMC is planning to achieve 20 MnT iron ore output by FY21.
EC limit at Daitari mines is proposed to be increased to 6 MnT p.a. 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 p.a to 6 MnT p.a.
