NMDC offers  224,000 MT iron ore in 2nd advance e-auction

In its second advance e-auction from Donimalai mines in the state of Karnataka, to be held on April 9, NMDC offers a total of 224,000 MT of iron ore.

Quantity offered: Fines 160,000 MT and lumps 64,000 MT

1st week April 12-18

Lumps 24,000 MT Fe% 63, Moisture 4-6%, Undersize Upto 10%

Fines 28,000 MT Fe% 61.5, Moisture 6-8%

2nd week April 19-25

Lumps 20,000 MT Fe% 63, Moisture 4-6%, Undersize Upto 10%

Fines 32,000 MT Fe% 61.5, Moisture 6-8%

3rd week April 26-May 2

Lumps 12,000 MT Fe% 63.0, Moisture 4-6%, Undersize Upto 10%

Fines 48,000 MT Fe% 61.5, Moisture 6-8%

4th week May 3-9

Lumps 8,000 MT Fe% 63.0, Moisture 4-6%, Undersize Upto 10%

Fines 52,000 MT Fe% 61.5, Moisture 6-8%

The quantity offered is quite less (by 55%) as compared to 496,000 MT of iron ore offered in the 1st advance e-auction, on March 8.

A senior NMDC official told SteelMint, “Not many reasons but the low buying interest for lumps in the 1st advance e-auction due to price difference in lumps (high) and fines (low) and Pellets being preferred by sponge iron units has resulted in offering of limited quantity this time.”

In 1st advance e-auction, 336,000 MT of fines was sold out completely. Out of 160,000 MT offered, 64,000 MT (40%) of lumps was purchased i.e. Week 1 (20%) and Week 2 and 3 (70%).

JSW was buyer of 68% of total fines offered i.e. 228,000 MT of fines and 25% of total lumps i.e. 40,000 MT.

Details of material sold:

Week 1 (Mar 15-21)

No buyers for lumps

fines: 84,000 MT at Rs 2,360-2,370/MT (JSW 76,000 MT i.e. 90% at Rs 2,360/MT)

Week 2 (Mar 22-28)

lumps: 8,000 MT at Rs 4,458/MT

fines: 84,000 MT at Rs 2,360-2,370/MT (JSW 64,000 MT i.e. 76% at Rs 2,360/MT)

Week 3 (Mar 29-Apr 4)

lumps: 28,000 MT at Rs 4,458/MT (JSW 20,000 MT i.e. 71%)

fines: 84,000 MT at Rs 2,360-2,370/MT (JSW 44,000 MT i.e. 52% at Rs 2,360/MT)

Week 4 (Apr 5-11)

lumps: 28,000 MT at Rs 4,458/MT (JSW (71%) 20,000 MT)

fines: 84,000 MT at Rs 2,360-2,70/MT (JSW 44,000 MT (52%) at Rs 2,360/MT)

The bid price was a 0.1% increase over the floor price. Of 29 bids, no. of bidders and winners were 8.