Ore-starved iron and steel manufacturers in Karnataka have
started looking at sourcing the mineral from other states like Orissa and
Jharkhand, as the prices of the raw material in the Southern state, sold
through e-auction route, are hitting the roof.
The trend was visible in last round of auctions held on last
Friday and Saturday, where about 59 per cent of the offered quantity of ore
remained unsold as prices touched as high as Rs 3,900 a tonne for 62 per cent
grade of ore, industry sources said.
The high prices were witnessed against a base price of Rs
2,010 a tonne for the 57 per cent grade to a base price of Rs 2,750 a tonne for
62 per cent grade of ore, the sources added.
The Supreme Court appointed monitoring committee had put on
offer 8,76,000 tonnes of ore, having iron content of 55 to 62 per cent, for the
auctions. Of this, only 3,64,000 tonnes of ore found buyers due to higher
prices, the sources said.
“Bringing iron ore from Jharkhand or Orissa is at least
assured supply. But here in Karnataka, no one knows when they would get the
delivery of ore, bought in e-auctions due to logistical issues.
Echoing similar views, a senior JSW Steel official said that
sky-rocketing prices are deterring the local industry from participating in the
bidding rounds and companies are now exploring options like transporting it
from Chhattisgarh or Jharkhand.
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