From Praveen Chandra mines located in the state of Karnataka, MSTC offered a total of 104,000 MT of low grade iron ore fines, through e-auction on April 19.
The floor price for fines was low too. A couple of buyers i.e. JSW purchased 85% (88,000 MT) of total quantity and BMM lifted the rest 15% of fines.
“We have beneficiation facilities and hence, purchased some low grade fines. The same, is with JSW.
The floor price was also low as most of the steelmakers are uninterested to procure low grade material due to no beneficiation facility”, a senior BMM Ispat official told SteelMint.
Details (grade, quantity and price (Rs/UOM) of material offered:
Fe% 55 to 56 52,000 MT at Rs 1,300
Fe% 58 to 59 12,000 MT at Rs 1,850
Fe% 57 to 58 24,000 MT at Rs 1,550
Fe% 55.59 16,000 MT at Rs 1,250
Royalty 10%, VAT 5.5% (on auction price and royalty), FDT 12% are applicable.
No. of bidders and winners 2 and no. of bids 5. Bid price was a 0.11% increase over the floor price.
Details of material sold out:
52,000 MT Fe% 55-56 at Rs 1,300/MT (JSW)
12,000 MT Fe% 58-59 at Rs 1,850/MT (JSW)
24,000 MT Fe% 57-58 JSW 8,000 MT at Rs 1,550/MT (bid for 224,000 MT); BMM 16,000 MT at Rs 1,560/MT (floor price Rs 1,550/MT)
16,000 MT Fe% 55.59 at Rs 1,250 (JSW)
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