India: OMC Keeps Base Price Unchanged for Upcoming Iron Ore Fines E-auction
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Odisha Mining Corporation (OMC) - a state-owned miner is to conduct next e-auction for 430,000 MT iron ore fines on 07th May'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.
Compared to the previous fines e-auction held on 7th Mar'19, the base price for material from Gandhamardan, Koira, and Daitari has remained unchanged.
Price comparison of OMC iron ore e-auctions-
| Mines | Size | Fe (%) | Base Price as on 05th Jan'19 | Bid price as on 05th Jan'19 | Base Price as on 07th Mar'19 | Base Price as on 07th May'19 | Quantity Offer |
| (mm) | (INR/MT) | (INR/MT) | (INR/MT) | (MT) | |||
| Gandhamardan | -10 | 60-62 | 1,200 | 1,200 | 1,200 | 1,200 | 150,000 |
| Kurmitar (Koira) | -10 | 62-60 | 1,050 | 1,100-1,150 | 1,100 | 1,100 | 130,000 |
| Daitari | -10 | 64-62 | 2,300 | 2,300-2,350 | 2,400 | 2,400 | 150,000 |
| Total | 430,000 | ||||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
Odisha based major merchant iron ore miners had increased iron ore offers by INR 200/MT in the mid of April'19. After the hike, SteelMint's Odisha iron ore fines (Fe 63%) index is at INR 2,000 (ex-mines, including Royalty, DMF & NMET). SteelMint in conversation with trade sources learned that increased exports offer in low-grade fines resulted in hike in domestic offers by merchant miners.
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.
