During an investor’s call on July 13, 2020 SAIL informed that iron ore fines auctions from the PSU steel major’s captive mines in Chhattisgarh and Jharkhand are stuck up due to pending approvals from the respective state governments,
This also applies to sub-grade (Fe 55-60%) fines auctions. Stocks are currently assessed at 43 mn t with SAIL, 33 mn t of which happens to be in Jharkhand.
According to SteelMint data, 260,000 t of iron ore fines from SAIL’s Bolani and Barsua mines in mineral-rich Odisha had been auctioned off February and June’20.
However, bids have registered a steady decline, with Bolani and Barsua fines auctions on June 5 & 9 witnessing a meagre 40% and 20% bookings respectively.
The Bolani fines auctions on July 7 went without bids, in a stark indication of lack of ore offtake.
SAIL has lined up auctions for sale of fines from Odisha, Jharkhand and Rajhara mines in Chhattisgarh through July till August.
Relative lack of interest in SAIL auctions is attributable to payment flexibility enjoyed by consumers from merchant miners, which keeps the working capital cycle burden-free for end-users.
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