NMDC e-auctioned a total of 1,76,000 WMT of high grade (Fe 64-67%) Iron ore for the second time (earlier e-auctioned on Dec 14) from Beladila mines in Chhattisgarh on Dec 27, on Supreme Courts order to sell out some of its iron ore in Chhattisgarh.
“Though, steel demand and prices have started improving in India, steel markers in the state of Chhattisgarh showed no interest in purchasing iron ore e-auctioned the last day as they are our long term customers and buy iron ore on a regular basis.
Steel plants based in other locations of the country prefer to buy iron ore from the state of Odisha due to less cost of freight.
The same will be quiet high if the raw material is bought from Chhattisgarh, costing a minimum of Rs 1,000″, an NMDC official shared with SteelMint.
NMDC is likely to declare its January prices of iron ore on the 2nd of January, 2013.
Looking at the response in iron ore e-auctions from the state of Chhattisgarh and Karnataka, the company will have limited scope to raise iron ore prices as far as domestic market is concerned.
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