India: OMC Iron Ore Lump E-auction Receives Dull Response
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Odisha's state-owned miner- Odisha Mining Corporation (OMC) had scheduled its iron ore lump e-auction today (30th Sep'19). Total quantity put under the auction was 785,000 MT iron ore lumps. Out of the total quantity nearly 23% (183,000 MT) of material fetched bids. The material offered was from Gandhamardan, Daitari, and Koira mines. Traders were restricted to take part in this auction. The auction fetched flat bids except the lot of 10-180 mm offered from Gandhamardhan which received bids higher by INR 200-250/MT.
Out of the total quantity of 180,000MT offered from Koira mines, 114,000 MT received flat bids at INR 3,100/MT.
Lump from Gandhamardan mines received bids for total of 20,000 MT and 49,000 MT was sold from Daitari out of the total 90,000 MT ore offered.
Miner had reduced base prices by INR 250/MT from all its mines against the base price of last e-auction conducted on 2nd Aug'19. Out of the total quantity, 770,000 MT was DR-CLO and remaining 15,000 MT was lump ore.
Bid price comparison of OMC iron ore E-auctions
| Mines | Size | Fe (%) | Bid Price as on 02 Aug'19 | Base Price as on 30th Sep'19 | Bid Price as on 30th Sep'19 | Quantity Offered | Quantity sold |
| (mm) | (INR/MT) | (INR/MT) | (INR/MT) | (MT) | (MT) | ||
| Gandhamardan | 10-40 | 62% | 2,850 | 2,600 | 2,600 | 500,000 | 5,000 |
| 10-180 | 65% | 2,150 | 1,900 | 2150/2100 | 15,000 | 15,000 | |
| Kurmitar (Koira) | 10-40 | 62% | 3,350 | 3,100 | 3,100 | 180,000 | 114,000 |
| Daitari | 10-40 | 62% | 3,250 | 3,000 | 3,000 | 90,000 | 49,000 |
| Total | 785,000 | 183,000 | |||||
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.
