SteelMint: Odisha iron ore fines index rises by INR 500/t in recent deal

SteelMint's weekly Odisha iron ore fines index (Fe 62%) moved up by INR 500/t, w-o-w, to INR 5,900/t ex-mines. Limited availability of high-grade material (Fe 62-63%) and lower number of offers in the merchant market resulted in the hike in iron ore prices.

Rationale:

• Two deals were heard concluded for around 65,000 t at INR 5,700-6,000/t (ex-mine price, including royalty, DMF and NMET). Out of these, only one deal was considered under the calculation for the Fe 62% fines index and given 50% weightage. The second deal was not confirmed at the time of publication from either seller or buyer.
  
  
• T2- SteelMint received eight (08) offers and indicative prices under T2 trades in this publishing window. Seven (07) were taken into consideration and given 50% weightage. To check SteelMint's iron ore assessment, pricing methodology, and specification documents Click here
  
  

SteelMint's weekly Odisha iron ore lump index (5-18mm, Fe 63%) has inched up INR 250/t w-o-w, to INR 9,800/t ex-mines.

OMC to auction over 600,000 t of iron ore lump on 16 Feb: State PSU miner Odisha Mining Corporation (OMC) has scheduled an iron ore auction on 16 Feb for around 652,000 t of lump ore. The base price for the auction is yet to be disclosed. The last auction for iron ore fines (Fe 60-62%) on 1 Feb received flat bids i.e. in line with the base price of INR 4,000/t ex-mines, including royalty, DMF and NMET.

Highlights from other states:

SAIL auctions off 12,000 t of iron ore concentrates from Chhattisgarh: SAIL conducted an auction for 12,000 t of iron ore concentrates (Fe 64.53%-indicative) from its Dalli, Rajhara mines in Chhattisgarh which received bids at INR 5,020/t (loaded, including royalty, DMF, NMET and additional premium). Domestic iron ore concentrates prices have risen to a two-month high on the rally in pellet prices.

NMDC sells over 600,000 t of iron ore at Donimalai auction: The entire material on offer was booked at NMDC's 600,000 t iron ore auction from the Donimalai mines held on 8 Feb.

• • JSW Steel was the largest buyer at 444,000 t followed by BMM Ispat Ltd. at 124,000 t.
    
    
  • The iron ore fines (Fe 60.2%) lot was booked at INR 3,257/t (basic, taxes extra), up INR 190/t compared to the previous auction on 11 Jan.
    
    
  • Notably, the miner had announced a base price hike for fines by around INR 200/t earlier this week.