India: OMC Iron Ore Fines E-auction Receives Good Response; 81% Material Booked
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Vizag Steel booked around 150,000 MT iron ore fines offered from OMC's Daitari mines, as per sources.
Odisha's state-owned miner- Odisha Mining Corporation (OMC) had scheduled iron ore e-auction today (07th Mar'19). Total quantity put under auction was 580,000 MT iron ore fines. The material was from Gandhamardan, Daitari, and Koira mines. Traders were restricted to take part in this auction.
According to market sources report to SteelMint, the entire quantity of iron ore fines put up for auction from Gandhmardan and Daitari was booked. However, only 55% of material i.e 138,000 MT from Koira mines was sold.
The bid price for fines from Gandhamardan and Koira stood in line with set base price at INR 1,200/ MT and INR 1,100/ MT respectively. However, the bid price for Daitari fines witnessed at INR 2,500/MT, increase of INR 100/MT over the set base price of INR 2,400/MT.
As per sources, RINL stood the major buyer of Daitari fines at 150,000 MT (around 83% of total Daitari fines).
The miner had raised the base prices for few lots. The base prices for material from Koira mines was increased by INR 50/MT to INR 1,100/MT and for Daitari mines prices increased by INR 100/MT to INR 2,400/MT. However, the base price for material from Gandhamardan mines was unchanged at INR 1,200/MT.
Bid price comparison of OMC Iron ore e-auctions-
| Mines | Size | Fe (%) | Bid price as on 05th Jan'19 | Base Price as on 07th Mar'19 | Bid Price as on 07th Mar'19 | Quantity Put to Auction | Quantity Sold |
| (mm) | (INR/MT) | (INR/MT) | (INR/MT) | (MT) | (MT) | ||
| Gandhamardan | -10 | 60-62 | 1,200 | 1,200 | 1,200 | 150,000 | 150,000 |
| Kurmitar (Koira) | -10 | 62-60 | 1,100-1,150 | 1,100 | 1,100 | 250,000 | 138,000 |
| Daitari | -10 | 64-62 | 2,300-2,350 | 2,400 | 2,500 | 180,000 | 180,000 |
| Total | 580,000 | 468,000 | |||||
Base and Bid prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
As per data maintained with SteelMint, OMC iron ore production in Jan'19 increased by 17% to 1.2 MnT for the month as against 1.03 MnT in Dec'18.
