National Mineral Development Corporation (NMDC) has a pellet plant with an installed capacity of 1.2 MnT pa at Donimalai in Karnataka as a part of its beneficiation programme. Apart from this, it has also set up a beneficiation plant of 1.8 MnT pa in Karnataka.
NMDC is to conduct an auction for 19,000 MT iron ore pellets from Karnataka on 16 May’17. Pellets of grade Fe 64-64.5% will be offered in 19 lots of 1,000 MT each.
In the current auction, pellet offered comprises of size ranging from 6-16 mm with silica content between 4 to 4.5%, alumina content 2-3% and tumbler index of 95%.
Market participants anticipate that the pellet maker may reduce base prices by INR 500/MT against the previous e-auction. Sources anticipate base price for the scheduled e-auction to remain at INR 5,450-5,650/MT.
Prior to this, NMDC had auctioned 20,000 MT pellets on 30 Mar’17. The e-auction received poor response with only 1 lot of 1,000 MT getting sold. The base price was fixed at around INR 6,075/MT (basic).
Southern India pellet offers down by INR 300-400/MT M-o-M
Amid sharp decline in P-DRI prices, southern India pellet manufacturers have reduced offers. Bellary pellet offers have declined by INR 300-400/MT M-o-M and are presently hovering at INR 6,000-6,100/MT (basic).
P-DRI (78 FeM) prices in Bellary are presently seen at INR 14,800/MT (ex-works) down by INR 1,000/MT W-o-W.
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