MSTC is to offer a total of 192,000 MT of iron ore from Praveen Chandra mines, through e-auctions in the state of Karnataka, on March 21.
As per market anticipations, the floor price fixed for both lumps and fines, has been lowered by up to 16% , looking at poor response in the last week's e-auction.
Quantity to be offered:
Calibrated iron ore
48,000 MT with Fe% 63.21 at Rs 4,290
Floor price reduced by 5%, from Rs 4,526 to Rs 4,290
Iron ore lumps
8,000 MT with Fe% 65.1 at Rs 4,403
Floor price reduced by 5%, from Rs 4,650 to Rs 4,403
Iron ore fines Total of 136,000 MT as mentioned below:
36,000 MT Fe% 61.3 at Rs 2,250
Floor price reduced by 4%, from Rs 2,340 to Rs Rs 2,250
64,000 MT Fe% 63 at Rs 2,350
Floor price reduced by 16%, from Rs 2,800 to Rs 2,350
36,000 MT Fe% 62.8 at Rs 2,340
Floor price reduced by 10%, from Rs 2,600 to Rs 2,340
Royalty 10%, VAT 5.5% (on auction price and royalty), FDT 12%
are applicable.
Previous to this, on March 12, a total of 192,000 MT of iron ore was e-auctioned from Praveen Chandra mines.
Only 4,000 MT (3%) of fines with Fe% 61.3 was sold out at Rs 2,340/MT, out of the total 140,000 MT with Fe% 61.3-63 offered at Rs 2,340-2,800.
The entire quantity of lumps i.e. 8,000 MT with Fe% 65.1 and calibrated ore i.e. 48,000 MT with Fe% 63.21 at Rs 4,650/MT and Rs 4,526/MT respectively, remained unsold.
The floor price fixed for both lumps and fines was high and resulted in weak buying of fines and no response for lumps.
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