On March 12, from Praveen Chandra mines in Karnataka, MSTC offered a total quantity of 196,000 MT of iron ore (lumps and fines) to steel industries based in Karnataka.
There was no % change in the bid price as it was equal to the floor price and only a single bid was received.
From Praveen Chandra mines, only (2%) 4,000 MT of iron ore was taken away by a single buyer, out of 196,000 MT in total.
Royalty 10%, VAT 5.5% (on auction price and royalty), FDT 12% are applicable.
4,000 MT (3%) of fines with Fe% 61.3 was sold out at Rs 2,340/MT, out of the total offered quantity of 140,000 MT of fines.
The entire quantity of lumps i.e. 8,000 MT with Fe% 65.1 and calibrated ore i.e. 48,000 MT with Fe% 63.21 remained unsold as the floor price fixed was high, at Rs 4,650/MT and Rs 4,526/MT respectively.
A senior official of a Karnataka based steel unit said, “The reserve prices are likely to come down the next time Praveen Chandra mines material is offered in e-auction as buyers did not make purchases”.
Quantity that was offered (Price in Rs/UOM):
Calibrated Iron ore: 48,000 MT of Fe% 63.21 at Rs 4,526
Iron ore lumps: 8,000 MT with Fe% 65.1 at Rs 4,650
Iron ore fines: (Total quantity 140,000 MT)
64,000 MT of Fe% 63 at Rs 2,800, 40,000 MT of Fe% 61.3 at Rs 2,340 and 36,000 MT of Fe% 62.8 at Rs 2,600.
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