India's OMC Iron Ore Lump Auction Winning Bid Price Drops by INR 900/Ton Month-on-Month

en.Wedoany.com Reported - India's Odisha Mining Corporation (OMC) held an iron ore lump auction on May 20, involving a total volume of 1.3 million tons, with iron grades ranging from Fe 60-65%. In this auction, 95% of the lumps (i.e., 1.24 million tons) were sold at prices between INR 4,750 and INR 7,100 per ton, with an average premium of INR 600 per ton. The auction results showed that the weighted average winning bid price decreased by INR 900/ton compared to the previous round.

Prior to this auction, OMC had already reduced the base price of lumps by INR 150-1,100/ton. Market analysts pointed out that sponge iron (CDRI) prices experienced a significant decline, coupled with a weak performance in the semi-finished steel products market. These two factors jointly contributed to the drop in the winning bid prices for this auction.

In this auction of 1.3 million tons of iron ore lumps, the unsold portion amounted to 60,000 tons. As a major iron ore producer in eastern India, price changes by Odisha Mining Corporation typically have a certain impact on the regional market. Going forward, market participants will monitor the price trends of sponge iron and semi-finished steel products to determine whether lump prices will continue to face downward pressure.

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