Iron ore e-auction held on 21 Dec, 2013 by A & B categories mines as well stockyards in Karnataka, received good response by the bidders.
| Material type | Offered Quantity | Allotted Quantity | Sales in % (of total offered quantity) |
| Iron ore Lumps | 276,000 MT | 124,000 MT |
45 |
| Iron ore Fines | 336,000 MT | 336,000 MT |
100 |
| ROM | 404,000 MT | 148,000 MT |
36 |
| Total | 1,016,000 MT | 608,000 MT |
60 |
(All prices are basic)
Average floor price of Iron ore fines for Fe 62 was at INR 2,400; booking price was about INR 3,985/MT. Whereas, average floor price for Iron ore lumps of Fe 62 was at INR 2,800/MT; booking price was about INR 3,662/MT. Hence, Iron ore fines were booked at higher prices than the Iron ore Lumps.
Iron ore fines price increased owing to continuous growth in demand from last few months. Buyers are less interested to purchase Iron ore lumps because of low quality and high tumbler index.
Iron ore lumps demand may increase in coming future, market interest will shift slightly from fines to lumps because of very high fines prices. Also, Pig Iron producers will start using more lumps instead of fines which will help to increase the demand of Iron ore lumps in future and burden of Sinter in blast furnace is expected to decrease from 70-80% to about 60%.
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