SteelMint: Odisha iron ore fines index falls marginally

SteelMint's weekly Odisha iron ore fines (Fe 62%) index decreased marginally by INR 100/t to INR 6,000/t (ex-mines, including royalty, DMF and NMET).

OMC had scheduled an e-auction for iron ore fines on 2 Nov'21 for about 1.013 mn t. The auction had received bids for 70% (708,000 t) of the total material. The bids, however, stayed flat, i.e. at the level of the base price. OMC had reduced base prices for different grades of ore by up to INR 650/t compared to its last auction on 1 Oct.

The market observed low trading volumes during this festive week. However, miners continued to hold offers at the same levels.

Rationale:

• OMC's auction from the Daitari mine of around 28,000 t of fines (Fe 62-64%) was concluded at INR 6,200/t (ex-mines, including royalty, DMF and NMET), which was considered for price calculation and taken as T1 trade. It was given 50% weightage in the index calculation for Fe 62% fines.
  
  
• SteelMint saw limited offers and indicative prices under T2 trades in this publishing window. All were taken into consideration and given 50% weightage. To check SteelMint's iron ore assessment, pricing methodology, and specification documents Click here
  
  

Market highlights:

Leading state-owned iron ore miner OMC will conduct an auction for 25,000 t of seized iron ore fines (Fe 63.11%) on 12 Nov'21, as per latest information available with SteelMint. The allotted quantity of 25,000 t is being offered by Paradip Port. The floor price for the auction is set at INR 8,100/t (including royalty, DMF and NMET).

NMDC rolls over iron ore prices for Nov'21

NMDC has kept iron ore prices unchanged for Nov'21 deliveries, SteelMint learnt from sources. The company's sales from its Chhattisgarh mines were up 29%, m-o-m, in Oct.

FOR prices, Royalty, DMF and NMET extra

The Chhattisgarh Mineral Development Corporation Ltd. (CMDC) has issued a tender for sale of 15,832 t of iron ore lump (10-150mm, Fe +65%) from its Aridongri mines in Kanker district of the state. The floor price has been fixed at INR 9,645/t and the delivery period is within 60 days from the date of contract. Only end-users from Chhattisgarh can take part in the e-auction to be held on 18 Nov.