Southern India based sponge iron manufacturers who have been facing tough time owing to unmoved prices of NMDC in Karnataka iron ore e-auctions are looking for price reduction in base prices.
Though the miner has made successive price cuts in Chhattisgarh, NMDC’s base prices in Karnataka e-auctions have remained unaltered since beginning of this fiscal. Iron ore lump prices in NMDC (C.G.) have descended by 19% and fines prices have fallen by 22% since Apr’16.
A Bellary based sponge iron maker quoted that “sponge iron makers based in southern India are demanding price cut in NMDC’s Karnataka iron ore in e-auctions. The miner has reduced prices of 10-20 mm lump offered from its Kumaraswamy mines by nearly INR 100-150/MT but is offering limited quantity in smaller lots of 1,000 MT.”
Base price of lump (10-20 mm, Fe 63.3%) offered by NMDC’s Kumaraswamy mines in the e-auction conducted on 11 Jul’16 was INR 1,694/MT (basic) which received bids at INR 1,704/T. While the base price of lump (10-20 mm, Fe 62.6%) was INR 1,792/MT (basic) in the e-auction conducted on 22 Apr’16. Thus it is evident that base price on certain lots have witnessed reduction.
* till e-auctions held on 11 Jul’16
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