India: OMC Reduces Base Price for Upcoming Iron Ore Fines E-auction
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Odisha Mining Corporation (OMC) - a state-owned miner is to conduct next e-auction for 390,000 MT iron ore fines on 05th Jan'19. The material put under the hammer is from Gandhamardan, Daitari, and Koira mines. No traders shall be allowed to take part in the e-auction.
The base prices for fines have been reduced by INR 100/MT from each mines as against the base price of previous e-auction held on 05 Nov'18. However compared to bid price of last e-auction, base prices have come down by upto INR 500/MT.
The base price for fines offered from Daitari mines is at INR 2,300/MT, down 4% as against INR 2,400/MT in last e-auction. The base price for material offered from Gandhamardan and Koira mines is at INR 1,200/MT and INR 1,050/MT respectively.
Price comparison of OMC iron ore e-auctions-
| Mines | Size | Fe (%) | Base Price as on 05th Sept'18 | Base Price as on 05th Nov'18 | Bid price as on 05th Nov'18 | Base Price as on 05th Jan'19 | Quantity |
| (mm) | (INR/MT) | (INR/MT) | (INR/MT) | (INR/MT) | (MT) | ||
| Gandhamardan | -10 | 60-62 | 1,300 | 1,300 | 1,650-1,700 | 1,200 | 120,000 |
| Kurmitar (Koira) | -10 | 62-60 | 1,150 | 1,150 | 1,500-1,550 | 1,050 | 150,000 |
| Daitari | -10 | 64-62 | 2,400 | 2,400 | 2,400-2,450 | 2,300 | 120,000 |
| Total | 390,000 | ||||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
As per data maintained with SteelMint, OMC iron ore production for the month of Nov’18 increased by 29% to 0.94 MnT as against 0.73 MnT a month ago. In FY18, the miner recorded production of 7.92 MnT. The miner is planning to increase iron ore production in the coming years from its mines.
Odisha iron ore prices under pressure of increasing production:
Amidst less buying interest, Odisha miners have slashed iron prices. Iron ore trade prices in Odisha have come down by INR 500-600/MT in lump and by INR 400/MT in fines. Odisha iron ore prices remain under pressure as miners scale up production to utilize EC limits.
