On May 6, from its Donimalai and Kumarswamy mines located in the state of Karnataka, NMDC offered 172,000 MT of Iron ore (lumps and fines included), through e-auction.
Details of Iron ore offered:
From Donimalai mines:
Iron ore lumps 40,000 MT
From Kumarswamy mines:
Iron ore calibrated lumps 80,000 MT
Iron ore fines 48,000 MT
Iron ore low grade fines 4,000 MT
The bid price was a 3.89% increase over the floor price.
No. of bids 145, no. of bidders and winners 7 and 5.
NMDC sold 78% of total material offered i.e. entire quantity of lumps and fines was taken away; only 50% of total calibrated lumps was sold.
Fines was booked at prices higher by 21% and low grade fines by 32%, as compared to floor price set; lumps (including calibrated) were booked at equal to reserve price.
Most of the Iron ore Pellet makers located in Karnataka such as BMM and Xindia apart from JSW are buyers of fines from NMDC's e-auction, which is the only source of supply at the moment.
To procure the limited quantity of fines (low grade also) available to produce Pellet after beneficiation and to maintain production at a certain level, buyers bid high.
Details of material purchased:
From Donimalai mines:
Iron ore lumps
20,000 MT Fe% 60 Floor price Rs 3,735/MT
JSW 12,000 MT (had bid for 20,000 MT) at Rs 3,735/MT
Kalyani 8,000 MT at Rs 3,745/MT
20,000 MT Fe% 60.20 Floor/Booking price at Rs 3,759/MT JSW
From Kumarswamy mines:
Iron ore Calibrated lump – JSW (floor/booking price were equal)
20,000 MT Fe% 63 at Rs 3,892/MT (NMDC offered 40,000 MT)
20,000 MT Fe% 65 at Rs 4,130/MT (NMDC offered 40,000 MT)
Iron ore fines
20,000 MT Fe% 61 Floor price Rs 2,035/MT
JSW 12,000 MT at Rs 2,585/MT (had bid for 16,000 MT)
BMM 4,000 MT at Rs 2,585/MT
Mukand 4,000 MT at Rs 2,565/MT
28,000 MT Fe% 62 Floor price Rs 2,160/MT
JSW 24,000 MT at Rs 2,240/MT (had bid for 28,000 MT)
Xindia 4,000 MT at Rs 2,250/MT
Low grade fines
BMM 4,000 MT Fe% 58 at Rs 2,450/MT Floor price Rs 1,660/MT
Royalty 10%, VAT 5.5% (on auction price and royalty), FDT 12% are applicable.
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