National Mineral Development Corporation (NMDC) is to conduct an auction for 40,000 MT iron ore pellets from its Donimalai plant in Karnataka on 13 Oct’17. Pellets of grade Fe 64+/-0.5% will be offered in the e-auction.
In the current auction, pellet offered comprises of size ranging from 6-16 mm with silica content 4.5% max, alumina content – 3% max, sulphur – 0.021% max and tumbler index of 93% min.
Currently southern India pellet offers for Fe 63% grade in Bellary are hovering around INR 6,100-6,200/MT (basic). The market participants shared that pellet inquiries from sponge manufacturers are limited presently which has resulted in dull buying interest. Offers for Fe 65% grade pellets are heard at around INR 6,500-6,600/MT. As per market sources report, many sponge manufacturers in southern India have curtailed production which has resulted in less pellet off take.
Prior to this, NMDC had conducted auction for 5,000 MT pellets from its Karnataka plant on 21 Aug’17.
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.
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