India: OMC Lower Iron Ore Lump Base Price by INR 250/MT for Next Auction
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Odisha Mining Corporation has scheduled its next iron ore lump e-auction on 30th Sep'19. The auction will be conducted for 785,000 MT iron ore lumps and the material put under the hammer from Gandhamardan, Daitari and Koira mines. No traders shall be allowed to take part in the e-auction.
Out of the total quantity, 770,000 MT is DR-CLO and remaining 15,000 MT is lump ore.
Miner has reduced base prices by INR 250/MT from all its mines against the base price of last e-auction conducted on 2nd Aug'19.
Major Odisha merchant miner Serajuddin has decreased iron ore lump offers yesterday (24 Sept'19). Miner has lowered prices for 5-18 mm (Fe 63%) by INR 300/MT to INR 3,400/MT (ex-mines, including Royalty, DMF, & NMET) as against last offers at INR 3,700/MT (ex-mines, GST extra).
Price comparison of OMC iron ore e-auctions-
| Mines | Size | Fe (%) | Base Price as on 02 Aug'19 | Bid Price as on 02 Aug'19 | Base Price as on 30th Sep'19 | Quantity Offered |
| (mm) | (INR/MT) | (INR/MT) | (INR/MT) | (MT) | ||
| Gandhamardan | 10-40 | 62% | 2,850 | 2,850 | 2,600 | 500,000 |
| 10-180 | 65% | 2,150 | 2,150 | 1,900 | 15,000 | |
| Kurmitar (Koira) | 10-40 | 62% | 3,350 | 3,350 | 3,100 | 180,000 |
| Daitari | 10-40 | 62% | 3,250 | 3,250 | 3,000 | 90,000 |
| Total | 785,000 | |||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
In the last lump e-auction held on 2nd Aug'19, nearly 60% (275,000 MT) of material fetched bids out of the total quantity of 457,000 MT. The bids received were in line with set base price from all the mines.
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.
