SteelMint: Odisha iron ore fines index rises by INR 700/t ($9) on tight availability of high grade ore

SteelMint's weekly index for Odisha iron ore fines (Fe 62%) has moved up sharply by INR 700/t to INR 7,800/t (ex-mines, including Royalty, DMF & NMET) following hike in offers by the leading merchant miners. Limited availability of high-grade ore has continued to keep prices supported.

Odisha- India's largest iron ore producing state recorded merchant iron ore dispatches at 53.25 mn t in FY'21, down by 40% against 89.08 mn t in FY'20. The figures exclude movements for export and dispatches from captive mines of SAIL, JSW (Gonua & Narayanposhi) & Tata Steel and include dispatches from Sarda Mines, JSW Steel (Jajang & Nuagaon) & AM/NS, India movements.

Sarda mines has raised fines (Fe 63%) offer by INR 200-300/t this week to INR 8,200-8,300/t ex-mines. Towards the end of last week Odisha's Essel Mining increased offer by INR 800/t further in the lump and INR 700/t fines. Apart from them, other miners like JSW Steel & Serajuddin mines have also announce a price hike in lumps this week.

Rationale:

SteelMint has received nine (09) offers, indicative prices under T2 trade in this publishing window and eight (08) were taken into consideration and given 100% weightage. To see SteelMint's iron ore assessments, pricing methodology and specification documents Click here

Odisha iron ore prices:

NMDC Chhattisgarh to conduct auction for 231,000 t iron ore:

NMDC is going to conduct two iron ore auctions for around 180,600 t from its Bacheli mines and 50,400 t from Kirandul mines, Chhattisgarh. Out of the offered quantity, 16,800t is DR-CLO and 163,800t is fines. Both the auctions are scheduled for 30 Apr '21. Market participants are awaiting response of the auction to understand outlook on NMDC's iron ore prices for May'21.

SAIL manages to book 12,000t iron ore fines in a recent auction from Chhattisgarh:

Steel Authority of India Ltd (SAIL) conducted an auction on 22 Apr for 52,000 t iron ore fines from its Dalli mines in Chhattisgarh. After receiving no bids due to lower grade offered, SAIL relaunched the auction, according to market sources report to SteelMint. The material put to auction was of grade ranging from Fe 58.10% and Fe 56.33%. Out of 52,000 t offered, bids fetched were for 12,000t at INR 2,750-2,900/t inclusive of Royalty, DMF & NMET.

Bids remain stable in recent Karnataka e-auction by private miners:

In a recent Karnataka e-auction held on 20th Apr'21, out of the total quantity of 414,915 t put to auction, 309,915 t was booked. JSW Steel stood the largest buyer at 160,000 t. Auro minerals iron ore lumps Fe 64.79% received bids at INR 5,460/t (basic, taxes extra) stable as against last e-auction held on 8th Apr'21.