OMC to hold next round of iron ore auctions on February 26

Auctions will be conducted by MSTC and will be for different grades of calibrated lump ore and iron ore fines

State-controlled miner Odisha Mining Corporation (OMC) has notified the next round of iron ore e-auctions to be held on February 26. The auctions, to be conducted by MSTC, would be done for different grades of calibrated lump ore and iron ore fines.

OMC has notified the sale of over 0.2 million tonne of iron ore from its mines at Barbil, Koira and Daitari. The base price of iron ore lumps (inclusive of royalty) is in the range of Rs 1,600-1,750 per tonne, while the floor price of fines been pegged in the band of Rs 900-1,300 a tonne depending on ore grade.

Steel and other user industries feel the auctions would draw a tepid response this time too owing to high floor prices fixed by OMC.

“OMC has not corrected its base prices at iron ore auctions in sync with falling market prices. The high floor price would deter most buyers and result in lacklustre sale like the previous round of auctions", said a senior official at a steel company.

OMC's previous attempts to dispatch ore through auctions drew a lacklustre response from buyers, due to its prohibitive floor prices. The quantity of unsold ore by OMC had piled up, taking its inventory to the level of six million tonne.