NMDC Ltd, which conducted E-auction for 180,000 MT from its Chattisgarh mines on 7th September 2014, received good response owing to limited supply from Odisha/Jharkhand.
Out of 180,000 MT which was put for auction had 80,000 MT Lumps and 100,000 MT Fines from Bacheli and Kirandul mines.
Tata Steel, Tata Sponge and Chattisgarh/Maharastra based manufacturers participated in the auction, where as JSW steels prefer to go for imports.
|
Ore Type |
Qnty (MT) |
Base Price |
Bid Price* |
Bidders |
|
DR CLO (B) |
20,000 |
5,390 |
5,651-5,661 |
Mahendra Sponge, Gopani Sponge, Vandana,Sunflag |
|
Baila ROM (B) |
20,000 |
4,030 |
NA |
NA |
|
Baila Lumps (K) |
40,000 |
4,600 |
4,635 |
Tata Sponge, BS Ispat |
|
Baila Fines (B) |
60,000 |
3,160 |
3,354 |
Tata Steel |
|
Baila Fines (K) |
40,000 |
3,160 |
3,344 |
Tata Steel |
* Bid prices are as per sources, company officials have not given any confirmation regarding this
All prices are Basic in INR/MT. Royalty @15% and other taxes Extra.
(B)= Bacheli; (K)= Kirandul
It was noticed that bids had gone high largely due to closure notice issued in September to Jharkahnd miners running under second deemed renewal.
JSW steels did not participate in this auction as landed cost of NMDC ore would be more or less equal to landed cost of imported ore.
“Increase in royalty rates and falling global Iron ore prices make imports a better proposition for plants which are located on coastal region.” said an industry expert.
Odisha miner allowed liquidating stock
There is some relief for steel industry suffering from irregular supply of Iron ore. Recently Odisha high court has allowed RP Sao, one of the merchant miners to liquidate piled up stock within 3-months. People are hopeful that other miners which are closed will also be allowed to sell their piled up stock.
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