On Supreme Courts decision to e-auction some quantity of iron ore in the state of Chhattisgarh, a total of 1,76,000 tons of iron ore was e-auctioned by NMDC on the 14th of December.
According to a senior official at NMDC, “There were no response for purchasing of the high grade, Fe 64 to 67% iron ore as the steel industry is going through a tough phase.
Though, there has been no relief in the alarming situation of iron ore unavailability, it is difficult for steel plants to pay high for quality iron ore.
Only around 20-30% of the sponge iron plants are operational as of now.
Issues on high cost of input due to a partial implementation of BIS norms and power problems, no improvement in the semi finished and finished steel buying activities and ultimately the most important factor i.e. less flow of cash in market has led to the present scenario in steel market.”
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