A total quantity of 4,76,000 MT of Iron ore was offered by NMDC to steelmakers in Karnataka through January 23 e-auction.
NMDC was able to sell out only 50% of Iron ore lumps out of 268,000 MT in total as the material was both expensive and of low quality.
Huge demand for Iron ore fines and low availability of the raw material in domestic market resulted in 100% sales of fines, buyers of which were mostly Iron ore Pellet producers.
The quantity of fines was 208,000 MT (including 20,000 MT of low grade material) – 100,000 MT from Donimalai mines and 108,000 MT from Kumarswamy mines.
It appears that NMDC is at an advantage and will continue to be until production from other mines resumes, as it is at present the only source for Iron ore supply in Indian domestic market.
E-auction of 460,000 MT of Iron ore on February 1 (Friday) by NMDC in Karnataka is anticipated to show more or less the same result as the last e-auction.
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