NMDC offered a total of 328,000 MT of iron ore (lumps and fines) to steelmakers located in the state of Karnataka, through e-auction on March 8, from its Donimalai and Kumarswamy mines.
The state owned miner could make with 220,000 MT (88%) of iron ore sales.
The entire quantity of 176,000 MT of fines with Fe% 61-63.30 at Rs 2,155-2,532/MT was purchased by steel mills.
Whereas, 39% of lumps with Fe% 63-64 at Rs 4,394-4,522/MT and 20% of calibrated lumps with Fe% 64-65 at Rs 4,322-4,450/MT could be sold out.
“The issues with NMDC's Karnataka lumps is that it has low tumbler index of about 72-75% as compared to its Bailadila lumps which has tumbler index of 85-90%.
Though the Fe content is same for both Karmnataka and Bailadila, we cannot purchase the low tumbler index material which would account for low productivity and lesser yield.
It is not best suited for sponge iron plants and also requires higher fines generation.
Lumps prices, if reduced by around 20-25%, would be suitable for consumption, without hurting our margins.
A marginal drop of Rs 110/MT has not proved to be of much help.
Fines is no doubt taken away by most of the Pellet makers and as fines availability from private miners is difficult”, shared a senior official of a steel manufacturing unit in Karnataka.
Out of 30 bids, no. of bidders were 6 and winners were same.
The bid price was a marginal increase of 0.51% over the floor price.
JSW Steel:
Donimalai Total of lumps and
Kumarswamy 60,000 MT and 88,000 MT of fines
Material sold from Donimalai mines:
Entire quantity of fines was purchased and only 39% of lumps was sold.
Lumps:
JSW purchased the total lumps offered.
12,000 MT with Fe% 63 at Rs 4,394/MT
16,000 MT with Fe% 64 at Rs 4,522/MT
Fines:
20,000 MT with Fe% 63.20 at Rs 2,521-2,531/MT (JSW 16,000 MT at Rs 2,521/MT))
20,000 MT with Fe% 62.80 at Rs 2,463/,MT (JSW 16,000 MT)
20,000 MT with Fe% 63 at Rs 2,485/MT (JSW 16,000 MT)
20,000 MT with Fe% 63.30 at Rs 2,532/MT (JSW)
20,000 MT with Fe% 63.10 at Rs 2,510/MT (JSW)
From Kumarswamy mines:
100% of fines was purchased and only 20% of Caibrated lumps was sold.
Caibrated lumps:
12,000 MT with Fe% 64 at Rs 4,322/MT
4,000 MT with Fe% 65 at Rs 4,450/MT
Fines:
28,000 MT with Fe% 61 at Rs 2,155/MT (JSW 24,000 MT)
48,000 MT with Fe% 62 at Rs 2,170-2,190/MT (JSW 36,000 MT)
Royalty 10%, VAT 5.5% (on auction price and royalty), FDT 12% are applicable.
Total quantity of iron ore that had been offered:
Iron ore lumps 72,000 MT, Iron ore fines 176,000 MT and Iron ore calibrated lumps 80,000 MT.
Donimalai mines:
Iron ore lumps 72,000 MT and Iron ore fines 100,000 MT
Kumarswamy mines:
Iron ore calibrated lumps 80,000 MT and Iron ore fines 76,000 MT
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