National Mineral Development Corporation (NMDC) conducted auction of 20,000 MT pellets yesterday (i.e. 30 Mar’17) from its Donimalai pellet plant in Karnataka. The pellets offered were of grade ranging from Fe 64-64.5% and in 20 lots of 1,000 MT each.
According to sources, the e-auction received poor response with only 1 lot of 1,000 MT getting sold. Sources shared that the base price for the e-auction was fixed at INR 6,065/MT (basic).
Market sources also highlighted that the pellet maker may again conduct e-auction of unsold pellets in the coming week and there are chances that it may reduce base prices by INR 300-400/MT for the same.
In NMDC’s last e-auction conducted on 15 Nov’16, entire offered quantity of 12,000 MT pellets was sold. As per sources report, bids went up by INR 50/MT against base price of INR 5,219/MT.
Southern India pellet offers moved up amid increase in P-DRI prices – Bellary based pellet offers have gone up by INR 200-300/MT M-o-M and are presently seen at INR 6,400-6,500/MT for Fe 63% grade pellets. Pellet offers have gained strength amid sharp hike in P-DRI prices. P-DRI prices in Bellary have increased up to INR 1,000/MT M-o-M in Mar’17.
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