A grade mines in the state of Karnataka were able to sell out 44,000 MT (25%) of Iron ore in total, out of 172,000 MT.
Out of 9 bidders, only 4 parties made purchases from the e-auctions. The bid price was a 12% percentage increase over the floor price.
Details of sold out material:
Fe +56% Iron ore lumps:
16,000 MT in lots of 4,000 MT i.e. 8,000 MT at Rs 3,530 and Rs 3,520/MT each
Fe +53% Iron ore fines:
28,000 MT in lots of 4,000 MT at Rs 850/MT
Royalty 10%, VAT 5.5% (on auction price and royalty), FDT 12% are applicable.
Details of material that was offered:
MEL: Iron ore lumps: 16,000 MT of Fe% +56 at 300 (Rs/UOM)
Iron ore fines: 28,000 MT of Fe% +53 at 850 (Rs/UOM)
B Rudra Gouda: Iron ore fines: 40,000 MT of Fe% 57 at 2,180 (Rs/UOM), 20,000 MT of Fe % 58 at (Rs/UOM) and 20,000 MT of Fe % 63 at 3,430 (Rs/UOM)
Iron ore Lumps: 20,000 of Fe % 59 at 3,900 (Rs/UOM), 4,000 MT of Fe % 61 at 3,990 (Rs/UOM) and 24,000 MT of Fe % 61.3 at 4,390 (Rs/UOM).
Steelmakers in Karnataka told SteelMint that as the mine owners were free to decide the base price themselves, prices witnessed some variation.
Earlier, the monitoring committee in discussion with MSTC, Bangalore fixed the base price.
It was not feasible on part of steel industries located in the state to purchase the raw material at such high prices.
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