National Mineral Development Corporation (NMDC) had scheduled auction for 168,000 MT iron ore from its Chhattisgarh mines yesterday i.e 14 Sept’17.
Out of this, 16,000 MT was calibrated lump ore; 24,000 MT ROM; 20,000 MT iron ore lump, 40,000 MT iron ore fines and 68,000 MT was slime.
In the update received, bids received for DR-CLO went up by around INR 540/MT. The quantity offered was around of 4 rakes. As per sources, west India based steel mills actively participated in booking DR-CLO. The reason being higher global iron ore prices which has made imported lump costly and high domestic pellet offers.
Rajasthan based pellet maker – Jindal SAW pellet prices are heard to be at INR 7,150/MT (delivered Kandla) for Fe 63% pellets. The pellet maker has increased prices by 8% M-o-M.
On the other hand, high global prices and increased lump premium have made imported lump to India costly. Lump premium has increased to USD 0.456/DMT, CFR China. As per sources offers for South African lump (Assmang) are hovering around USD 105/MT, CFR India.
For September deliveries NMDC had raised DR-CLO (Fe 67%) prices by INR 240/MT to INR 2,800/MT (FoR prices, Royalty, DMF & other taxes extra).
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