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Weekly: Indian iron ore market overview

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Fines/Lumps

BigMint Bureau

2093 Reads

19 Dec 2020, 17:31 IST

SteelMint's benchmark Odisha iron ore lump index increased this week on improved trades. However, fines index has remained rangebound this week. Odisha based miners like Essel and Rungta have lifted offers this week. Also, NMDC announced 2nd price hike for Dec. In another major development, SAIL has started selling iron ore fines from Jharkhand mines via auctions.

SteelMint's index for Odisha iron ore fines (Fe 62%) index remained unchanged at INR 6,150/t (ex-mines, including Royalty, DMF & NMET).

In a confirmed trade heard, one of the merchant miners from Odisha sold around 50,000 t iron ore fines (Fe 60.5%) at INR 5,500/t (ex-mines, including Royalty, DMF & NMET).
In another deal heard, a trader sold 25,000 t iron ore fines (Fe 63%) at INR 6,300/t (including Royalty, NMET and DMF).
Govt. owned - Steel Authority of India Ltd (SAIL) conducted an auction for 104,000 t iron ore fines (Fe 60.8%) auction on 15 Dec'20 from its Barsua mines in Odisha. Nearly 50% of the offered quantity was booked at INR 3,800-3,810/t (loaded into rakes and excluding royalty), SteelMint learned from its sources.
All of the above have been considered as confirmed trade for index calculation after normalizing for grade and tax terms. Apart from this, SteelMint received seven offers, indicative prices in this publishing window. To see SteelMint's iron ore assessments, pricing methodology and specification documents, Click here

Govt of Odisha has issued orders to suspend mining at three iron ore blocks amid violation of MCDR Act 1988 and the provision rule- 10 (5) of OMPTS rules, 2015. The mines include Murgabeda of DR Patnaik, Jaribahal mine of Kashvi International and Deojhar mine of Tarini Minerals Pvt, sources have reported SteelMint.

The Odisha government's proposal to penalise the auctioned mines for their failure to meet MDPA commitments could if actually implemented, bring relief to many steel-makers dependent on Odisha's iron ore. This may increase iron ore supplies in the state in the coming months.

Chhattisgarh-: India's largest merchant and govt-owned iron ore miner, NMDC has announced the 2nd price hike for Dec'20, SteelMint learned from credible sources. The price of Baila lump has increased by INR 700/t ($10), DR-CLO by INR 820/t ($11) and that of fines by INR 500/t ($7). The sharp hike in global iron ore prices and consecutive Indian steel prices have led to a hike in iron ore offers.

Karnataka -: NMDC also raised iron ore offers around INR 400-500/t in its next set of Karnataka e-auction. In the recent iron ore e-auction conducted on 15th Dec by private miners. 205,000t (180,000 t fines and 25,000 lumps) fetched bids out of the total quantity of 332,955 t put to auction. JSW Steel stood the largest buyer at 160,000 t. The bids in the auction increased upto INR 1,190/t. The high grade lumps Fe 63.25% received bids upto INR 5,150/t and fines Fe 61.7% upto INR 5,060/t (basic, taxes extra).

Jharkhand - SAIL booked 104,000 t fines (Fe 62%) at INR 4,800-4,850/t (excl. Royalty, DMF and NMET) via auction held on 19 Dec'20 from Kiriburu mines in Jharkhand. This was its first auction from Jharkhand mines after the most awaited clearances from state govt.

India iron ore prices-: