- DR CLO premium rises by INR 60/t from previous auction
- Entire fines volumes at Bacheli, Kirandul remain unsold
NMDC sold 27,500 t of iron ore at its Chhattisgarh auctions held on 23 July, significantly lower than the 73,100 t sold in the previous auction on 16 July, as weak buying interest continued to weigh on fines procurement.
At Bacheli, the entire 21,500 t of DR CLO (10-40 mm, Fe 67%) was booked at INR 6,570/t (FOR) against a base price of INR 5,900/t, reflecting a premium of INR 670/t, up INR 60/t from the previous auction. Meanwhile, 6,000 t of iron ore lumps (10-20 mm, Fe 65.5%) were sold at the base price of INR 5,600/t.
However, demand for fines remained weak. The entire 78,200 t of fines offered at Bacheli at a base price of INR 3,790/t, along with 71,600 t of Fe 64% fines offered at Kirandul at INR 4,740/t, remained unsold.
The latest auction indicates that buyers continue to show a preference for higher-grade lump ore, with the increase in DR CLO premium reflecting steady demand from sponge iron producers. In contrast, persistent unsold fines volumes suggest subdued procurement interest, despite unchanged reserve prices.
Prices exclude royalty, DMF, and NMET.
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