India: OMC to Auction 334,500 MT Iron Ore Fines
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The miner has raised base price by INR 100/MT from its Gandhamardhan and Koira mines.
Odisha Mining Corporation has scheduled its next iron ore fines e-auction on 12th July'19, base prices increased upto INR 100/MT against the base price of previous e-auction conducted on 14th May'19.
The auction is conducted for 334,500 MT iron ore fines and 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.
The miner has raised base prices for material offered from Koira and Gandhamardan by INR 100/MT each. However, the base price for Daitari fines remain stable against last e-auction at INR 2,450/MT.
Odisha merchant miners kept iron ore prices unchanged in June after receiving decent bookings at the beginning of Jun'19.
In the last fines e-auction held on 14th May'19, the miner received flat bids. Out of the total quantity of 430,000 MT, the miner received bids for about 71% (304,000 MT) of material.
Price comparison of OMC iron ore e-auctions-
| Mines | Size | Fe (%) | Bid Price as on 07th Mar'19 | Base Price as on 14th May'19 | Bid Price as on 14th May | Base Price as on 12th July | Quantity Offered |
| (mm) | (INR/MT) | (INR/MT) | (INR/MT) | (INR/MT) | (MT) | ||
| Gandhamardan | -10 | 60-62 | 1,200 | 1,250 | 1,250 | 1,350 | 180,000 |
| Kurmitar (Koira) | -10 | 62-60 | 1,100 | 1,150 | 1,150 | 1,250 | 4,500 |
| Daitari | -10 | 64-62 | 2,500 | 2,450 | 2,450 | 2,450 | 150,000 |
| Total | 334,500 | ||||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
OMC iron ore production for the month of May'19 recorded at 0.81 MnT, down as against 1.39 MnT in Apr'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.
