Tata Steel, India’s 3rd largest steel maker, who has been importing Iron ore amid uncertainly in mining conditions in India, has purchased around 40,000 MT Iron fines from recent NMDC’s (Chhattisgarh) e-auction. This is the second time the company has participated in NMDC’s auction. Earlier, the company has also bought some Pellet cargoes from Jindal Steel and Brahamani River Pellets Limited (BRPL).
NMDC had invited sales of 112,000 MT Iron ore (Fines: 60,000 MT; Lumps: 52,000 MT) from its Bailadia mines in Chhattisgarh on 11 Jul, 2014, which closed on 18 Jul, 2014. Other companies, which were awarded in this auction, were JSW Steel and Uttam Galva.
Sources close to this matter told that JSW Salem was awarded 7 rakes of Baila Lumps and Uttam Galva was allotted 1 rake. However, 20,000 MT Lumps remain unsold.
Tata Steel was awarded 10 rakes of Iron fines and JSW Steel’s Amba River Coke plant was allotted 5 rakes of Iron fines. Each rake contains approximately 4,000 MT ore.
Net landed cost of 64% Iron fines to Tata Steel’s Jamshedpur plant would be around INR 5,700-5,800/MT (including royalty).
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