Iron ore e-auctioned not up-to the mark, say Karnataka sponge manufactures

Though steel plants based in Karnataka took a relief after govt start e-auctioning Iron ore. But this is not the end of the problem say Karnataka sponge manufacturers.

MSTC claims to have conducted successful auction but most bidders have complained about the high reserve prices relative to the quality of ore auctioned.

Any unsold ore would be an aberration as sales are not correlated to lack of demand or low grade of ore. A faulty laboratory report on iron content may create unrealistically high reserve price, which may not generate any bid said sponge manufacturer based in Bellary.

“We bid iron ore (lumps) of grade 58 % Fe at Rs 3800/mt in e-auction, but it has high contamination and size problem, said another sponge manufacturer based in Koppal ”