SteelMint: Odisha iron ore fines index remains stable on low trade volumes

Iron ore fines prices in Odisha remained largely stable this week. SteelMint's weekly Odisha iron ore fines index (Fe 62%) has fallen marginally by INR 50/tonne (t), w-o-w, to INR 5,050/t ex-mines.

Limited deals for high-grade fines were heard this week. A few deals were reported to SteelMint for around 30,000-35,000 t of fines (Fe 60/61%) at INR 4,000/t (ex-mines, inlcuding royalty, DMF and NMET) but these were not considered for the index calculation due to lower grade.

Odisha-based merchant iron ore miner, Rungta Sons Pvt Ltd., has slashed iron ore fines (Fe 62%) prices by INR 800/t and lump prices by around INR 2,000/t against last offers floated towards end-Nov'21, sources informed SteelMint.

However, a few market participants are doubtful whether the recent hike in pellet offers will result in a hike in offers by the merchant miners.

Rationale:

• No trades were considered as T1 trade hence given 0% weightage in the index calculation for Fe 62% fines.
  
  
• SteelMint received eleven (11) offers and indicative prices under T2 trades in this publishing window. Eight (08) were taken into consideration and given 100% weightage. To check SteelMint's iron ore assessment, pricing methodology, and specification documents Click here
  
  

Odisha iron ore prices:

NMDC to re-auction nearly 300,000 t of iron ore from Chhattisgarh

State-owned miner National Mineral Development Corporation (NMDC) has rescheduled two iron ore auctions. The first auction is for 222,600 t of Fe 64%-67% grade ore from the company's Bacheli mines, while the second is for 75,600 t of Fe 64%-65.5% grade material from the Kirandul mines - both in Chhattisgarh. The auctions are scheduled for 16 Dec'21. NMDC's previous auction held on 29 Nov failed to elicit any response from buyers.

NMDC cuts base price for Karnataka e-auction

NMDC has slashed iron ore prices by INR 400/t for fines and INR 1,200-1,300/t for lumps from 8 Dec'21 for auction from its Karnataka mines. The current floor price of fines (Fe 62%) stands at INR 3,427/t, while Fe 63% fines is priced at INR 3,599/t (basic, excluding royalty, DMF and NMET). The base price of lump (Fe 64%) is at INR 4,056/t (basic, minus royalty, DMF and NMET)

NMDC sells sizeable volumes at auctions from its Karnataka mines

• The entire material on offer was booked at NMDC's 540,000 t iron ore auction from the Donimalai mines held on 8 Dec'21. JSW Steel Ltd. was the largest buyer at 320,000 t followed by BMM Ispat Ltd. at 120,000 t.
  
  
• At NMDC's auction from Kumaraswamy mines on 7 Dec'21, 292,000 t of iron ore was booked out of 301,000 t offered. JSW Steel remained the largest buyer at 204,000 t followed by Vanya Steels Pvt. Ltd. at 28,000 t.