Steel Authority of India Limited (SAIL) did not receive any bids in an e-auction conducted today for 40,000 t iron ore fines (Fe 61.3%) from its Barsua mines, Odisha. The company had set the base price for the auction at INR 2,000/t (loaded to wagon, taxes extra).
High base price was the key reason for buyers not putting in bids, an auction participant told SteelMint.
The final price for SAIL iron ore fines put up in the auction would be total INR 2,950/t after adding royalty, DMF and NMET payouts if the cargo was sold at the base price of INR 2,000/t.
SAIL pays royalty rates applicable to 64% lump for Bolani & Barsua fines due to technical issues related to ore stacking at these mines.
SteelMint’s Odisha iron ore index for Fe 63% fines was at INR 2,900-3,100/t (ex-mines, royalty, NMET, and DMF included) this week compared with last week’s assessment of INR 2,400-2600/t. However, buyers are reluctant to buy at the increased offer prices. Few deals have been concluded this week due to high prices.
Sponge and billet prices have down sharply in the last few days on dull market sentiments. P-DRI prices in Durgapur have come down by INR 1,200/t in the last three days, SteelMint analyzed.
In the last auction conducted by the Steel Authority of India (SAIL) sold out entire offered quantity (100,000 t) for Fe 62.5% iron ore fines from its Bolani mines on 7th Aug’20 at INR at the 16% higher than the base price to INR 1,790-1,800/t (loaded to rake; Royalty, DMF, NMET & other taxes extra).
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