B Rudra Gouda mines (B category), located in the state of Karnataka offered 248,000 MT Iron ore through e-auction on 16 May.
In comparison to earlier e-auction on 22 April, the floor price was lowered only for material with Fe 60 and was kept constant for other grades.
Fines (Fe 60) floor prices down by 6% i.e. from Rs 2,250/MT to Rs 2,125/MT; lumps prices (Fe 60) dropped by 5% i.e. from Rs 3,470/MT to Rs 3,290/MT.
Details of material offered:
Iron ore fines
16,000 MT Fe 59-60 at Rs 2,125/MT
16,000 MT Fe 63-65.5 at Rs 2,650/MT
Iron ore lumps
100,000 MT Fe 59-60 at Rs 3,290/MT
100,000 MT Fe 61.5-62.5 at Rs 3,890/MT
16,000 MT Fe 62.5-63 Rs 3,990/MT
Royalty 10%, VAT 5.5% (on auction price and royalty), FDT 12% are applicable.
The bid price witnessed a 9.6% increase over the floor price. Number of bids were 251, and number of bidders and winners 11 and 9 respectively, which shows that it was a stiff competition.
Details of material sold:
Entire fines was procured at bid price higher by 16% and 19%; Only 9% of total lumps offered was purchased at booking prices equal to reserve price.
BMM Ispat 16,000 MT Fe 59-60 at Rs 2,635/MT
BMM Ispat 8,000 MT Fe 63-65.5 at Rs 3,150/MT
JSW Steel 8,000 MT Fe 63-65.5 at Rs 3,140/MT (had bid for 16,000 MT)
Iron ore lumps
Akshara Industries 4,000 MT Fe 61.5-62.3 at Rs 3,890/MT.
In order to procure maximum feasible quantity, since BMM and JSW have the facilities of beneficiation, they bid high for fines.
Expensive lumps was highly unacceptable as Sponge iron units are not willing to pay high, which would hurt the cost of production drastically.
Rather, they would opt to carry Pellet (Fe 62), prices of which are stable.
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