NMDC received high bids for fines offered on Apr 29 e-auction

From its Donimalai mines located in the state of Karnataka, NMDC offered a total of 68,000 MT of Iron ore fines with Fe% 60-60.50, on April 29.

The bid price was a 27.35% increase over the floor price. Booking price was in the range of Rs 2,566-3,029/MT; floor price at Rs 2,110-2,179/MT.

No. of bidders 5, winners 3 and no. of bids 267.

NMDC sold 88% (60,000 MT) of the total quantity (68,000 MT) of fines offered.

Buyers: JSW Steel (44,000 MT), Sesa Goa (8,000 MT) and BMM Ispat (8,000 MT).

NMDC's iron ore fines e-auction met with a stiff competition among 3 parties, as a total of 267 bids were received, who were looking to procure fines in maximum possible quantity.

JSW is currently utilizing 70% of total production capacity and to maintain operations at current levels, it bid high, having the beneficiation facilities to convert the inferior quality fines to high grade for further use.

Sesa Goa's Pig iron plant is presently running at 60-70% capacity and to continue the current level, it procured fines at high prices. Market for foundry grade Pig iron is not good at the moment, as consumption has come down drastically on cheaper scrap and steel grade Pig iron.

Manufacturers are selling foundry grade material at prices below manufacturing cost.

BMM Ispat also has the advantage of its beneficiation plant in Bellary and would be utilizing it further for Pellet making.

Details of material sold out, Price in (Rs/MT):

20,000 MT Fe% 60.50 Floor price 2,179

JSW 12,000 MT at 3,039 (had bid for 20,000 MT)

Sesa Goa 8,000 MT at 3,029

20,000 MT Fe% 60 Floor price 2,110

JSW 16,000 MT at 2,590

BMM 4,000 MT at 2,580 (had bid for 8,000 MT)

20,000 MT Fe% 60.20 Floor price 2,146

JSW 16,000 MT at 2,576

BMM 4,000 MT at 2,566 (had bid for 8,000 MT)

Royalty 10%, VAT 5.5% (on auction price and royalty), FDT 12% are applicable. Bid value quoted is the basic price in Rs/WMT (Wet Metric Ton).