Odisha’s state-owned miner- Odisha Mining Corporation (OMC) had scheduled an auction for sub-grade iron ore fines today (i.e. on 05th Aug'19). Total quantity put under the auction was 525,000 MT fines (Fe 58%) . Traders were restricted to take part in this auction.
As per sources report to SteelMint, entire material got booked in the auction. The material offered was from Gandhamardan mines. As per sources, sub-grade fines lot offered from Gandhamardan received a good response and entire quantity offered of 525,000 MT was sold. Bids moved up by around INR100-150/MT over the set base price of INR 750/MT (including Royalty). Bids received were at INR 850-900/MT.
State-owned miner - Odisha Mining Corporation (OMC) is all set with iron ore production ramp-up plans for coming years to make up for expected supply disruption after March 2020 following lease expiry. OMC is planning to achieve 20 MnT iron ore output by FY21.
EC limit at Daitari mines is proposed to be increased to 6 MnT p.a. from current EC of 3 MnT pa. On similar lines, EC limit at OMC's Kurmitar mines is proposed to be increased from current 2.4 MnT p.a to 6 MnT p.a.
India's iron ore output is poised to post a sharp drop in the 2020-21 fiscal year starting 1 April, but it may not result in a significant spike in imports although domestic prices may increase.
Indian imports of the pulverised coal injection (PCI) grade used for steel production fell to this year's lowest level in October as more Australian imports were replaced with PCI from Russia and Canada.
India's steel demand is forecast by some domestic analysts to grow at a slower pace of 5-6pc in the 2019-20 fiscal year ending 31 March compared with 7.5pc growth in 2018-19.
Indian spot steel trades remained limited during the week-47 (16-23rd Nov'19). Participants mentioned that, inquiries were less than the average, however due to sufficient orders in hand, the producers have slightly change their offers.
SteelMint in conversation with market participants learned low-grade fines (Fe 57/58) export price picked up to around USD 55-57/MT as against last week's assessment at around USD 54-57/MT. The market is supported amid rise in Chinese demand and falling iron ore inventory at major Chinese ports & restocking ahead winters.
BRPL, one of India's largest iron ore pellet exporters, achieved its highest monthly sales of 357,562t in November.