India: JSW Steel Booked 20,000 MT Iron Ore Fines from OMC's Daitari Mines

As per sources report to SteelMint, JSW Steel booked 20,000 MT iron ore fines (Fe 64-62%) from Daitari mines in OMC e-auction conducted today (14th May'19) . The company has booked iron ore fines at base price of INR 2,450/MT (inclusive of Royalty).

The total quantity put under auction was 430,000 MT iron ore fines. The material was from Gandhamardan, Daitari, and Koira mines. Traders were restricted to take part in this auction.

According to market sources report to SteelMint, out of the total quantity of 430,000 MT, nearly 71% of material (304,000MT) was booked while 126,000 MT remained unsold. The bid prices for the material remained in line with the set base prices for all the three mines.

As per sources, most of the material from Gandhmardan and Koira mines received bids. Gandhmardan mines fetched bids for about 147,000 MT fines and Koira mines sold about 114,000 MT (88% of total Koira fines). However, only 43,000 MT of material from Daitari was booked while remaining 107,000 MT remained unsold.

As per sources, the steel makers preferred purchasing at lower end amid logistic issues associated with rake movement and high prices for road ways movement.

Odisha Mining Corporation (OMC) has achieved an increase in its iron ore production for FY'19 by 32% to 10.47 MnT as against 7.92 MnT in last fiscal year FY'18.

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.