Chhattisgarh Sponge Iron Manufacturer’s Association (CGSIMA) has requested Orissa Mining Corporation (OMC) to reduce base prices of lump offered from its Koira mines by INR 200/MT.
Chhattisgarh based sponge iron plants are interested to purchase lump (10-40 mm, Fe 62% ) from OMC’s Kurmitar (Koira) mines but due to high landed cost they are finding it difficult to source material from OMC. CGSIMA via letter written on 27 Aug’16 had requested OMC to reduce base prices by INR 200/MT.
Mr. Vijay Jhanwar (President, CGSIMA) in conversation with SteelMint shared that “CGSIMA has requested to OMC to reduce base prices of 10-40 mm lump offered from its Koira mines to INR 1,500/MT (inclusive of Royalty, DMF and NMET). If the prices are reduced, Chhattisgarh based plants are ready to lift 2 lakh tonnes of lump per month via e-auctions and also sign long-term contract for 6 months.”
OMC, Koira mines is having stockpile of more than 1.3 MnT lump and in previous e-auctions they have received dull buying response from the bidders. Thus, if base prices are reduced marginally then it will be beneficial from OMC to clear the stockpile, he added further.
It is also to be noted that OMC’s last e-auction was held on 28 Jul’16 in which base price of lump (10-40 mm, Fe 62%) has remained unchanged since 01 Jun’16 at INR 1,700/MT (ex-mines, inclusive of Royalty, DMF & NMET).
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