OMC tender points to further increase in domestic iron ore spot prices

June 30, 2008

June 30th (SteelPrices India) – It is learnt that Bhuwneshwar based Orissa Mining Corporation’s latest quarterly tender on June 27th 2008 has received higher prices for sale of iron ore during July to September 2008 period as compared to April to June 2008 prices.

Type Size Fe A-J’08 J-S’08 Change %
Iron ore fines   62%-64% 1417 1457 40 2.8%
Calibrated for BF 10-30 63.00% 4251 4561 310 7.30%
Lumps   65.0% 3300 3520 220 6.7%
             

1. Rates are in INR per tonne
2. Rates are Ex OMC mines
3. VAT or CST is in addition
4. Royalty is INR 19 per tonne for Fe content of 62% to 64% and INR 27 per tonne for Fe content of 65%
5. These rates would be valid for all supplies during July to September 2008 period

The rise in higher price received is attributed to production constraints due to rainy season amid firm demand. As per market experts, this is likely to result in a general increase in iron prices in Orissa of INR 200 per tonne to INR 500 per tonne.

The movement of domestic spot iron ore prices in Burwil during this fortnight is as under

Product Grade Size 16-Jun 27-Jun Change %
Iron ore – BF Fe 65% 10-40 4500 5000 500 11.1%
Iron ore – Sponge Fe 63% 5-18 5600 6100 500 8.9%
Iron ore – Fines Fe 63% Fines 1900 1900 0 0.00%
             

1. Rates are in INR per tonne
2. Rates are Ex mines but include loading into rakes
3. VAT or CST is in addition
4. Royalty is INR 19 per tonne for Fe content of 63 and INR 27 per tonne for Fe content of 65%

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