MSTC is to offer Iron ore lumps as well as iron ore fines from B Rudra Gouda mines located in the state of Karnataka, through e-auction on April 22 (Monday).
A total of 264,000 MT of iron ore is to be offered, which includes 68,000 MT of fines and 196,000 MT of lumps.
Floor price for fines has been raised while that of lumps has been reduced slightly.
Details (grade, quantity and floor price-Rs/UOM) of the raw material to be offered is mentioned below:
Iron ore fines:
Fe% 57.5 to 58 20,000 MT at Rs 1,705
Fe% 60 to 61 16,000 MT at Rs 2,250
Fe% 62.5 to 63 32,000 MT at Rs 2,650
Iron ore lumps:
Fe% 59 to 60 92,000 MT at Rs 3,470
Fe% 61.5 to 62.5 100,000 at Rs 3,890
Fe% 62.5 to 63 4,000 MT at Rs 3,990
Royalty 10%, VAT 5.5% (on auction price and royalty), FDT 12% are applicable.
In earlier e-auctions:
On March 21, from B Rudra Gouda mines, a total of 224,000 MT of Iron ore (fines and lumps) was e-auctioned in the state of Karnataka.
Fines was purchased in total. Whereas, only 28% of lumps could be sold out.
JSW purchased 60% of the total quantity of fines sold out.
The bid price was a 1.63% increase over the floor price. Out of 111 bids, no. of bidders and winners were 15 and 14 respectively.
Details of quantity sold out:
Iron ore fines Fe% 57 to 58.5 (Quantity in MT)
48,000 MT at Rs 1,650 (JSW)
4,000 MT at Rs 1,650
28,000 MT at Rs 1,640
Iron ore lumps Fe% 58 to 59
4,000 MT at Rs 3,520
Iron ore lumps Fe% 62.5 to 63
36,000 MT at Rs 3,990
Details of material that was offered:
Iron ore fines:
A total of 80,000 MT with Fe% 57 to 58.5 at Rs 1,590
Iron ore lumps:
A total of 144,000 MT with Fe% 58-62.5 at Rs 3520-Rs 3,950, as mentioned below:
80,000 MT with Fe% 58 to 59 at Rs 3,520
12,000 MT with Fe% 61.5 to 62.5 at Rs 3,620
120000 MT with Fe % 61.5 to 62.5 at Rs 3,950
40,000 MT with Fe % 62.5 to 63 at Rs 3,990
Royalty 10%, VAT 5.5% (on auction price and royalty), FDT 12% are applicable.
On March 8, only 49% of total lumps offered and entire quantity of fines, was sold out.
JSW was the biggest buyer of fines.
Whereas, costlier lumps was not preferred by most of the steel plants.
For fines, the floor price was lowered by 28% to Rs 1,580-2,680/MT due to weak response earlier (at Rs 2,180-3,430/MT in February 22 e-auction).
Whereas, for lumps, the reserve price dropped by 10% to Rs 3,520-3,950/MT (at Rs 3,900-4,390/MT in February 22 e-auction).
Whereas, on February 22, only 25% of the total iron ore offered, was purchased in the e-auction due to high base price fixed.
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