On March 20, NMDC offered iron ore (fines and calibrated lumps) from its Kumarswamy mines in the state of Karnataka, which was a total of 148,000 MT.
NMDC was able to make with 5% of sales in lumps and 41% in fines from the total quantity offered.
JSW continued to stand as the biggest buyer for fines with a total of 56,000 MT.
Steelmakers in Karnataka told SteelMint, “Apart from low tumbler index and high prices, there is no such reason for weak buying in lumps.
Sponge iron units are either taking a shut down or using Pellet to continue operations.
Prices of lumps is expected to come down, once mines in Karnataka resume operations and hope B grade mines in the state to open up soon.
The bid price was a 5.6% increase over the floor price. Out of 36 bids, no. of bidders and winners were 5 and 3 respectively.
Details of material sold out:
Iron ore fines 28,000 MT with Fe% 62 at Rs 2,200-2,210 (JSW 20,000 MT at Rs 2,210)
40,000 MT with Fe% 63 at Rs 2,429-2,439 (JSW 36,000 MT at Rs 2,429)
Calibrated lump ore 4,000 MT with Fe% 65 at Rs 4,450
Royalty 10%, VAT 5.5% (on auction price and royalty), are applicable.
Quantity that was offered:
fines: 68,000 MT
calibrated lumps: 80,000 MT
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