Only 30% of iron ore lumps was sold out in NMDC's e-auction from its Kumarswamy and Donimalai mines in the state of Karnataka on January 16, as the raw material was quite expensive.
The iron ore lumps have low tumbler index between 72 to 75 on account of which iron ore fines needs more of refining, which is otherwise higher at 80-82 in the eastern part of India.
A number of sponge iron manufacturers are not operating at the moment as buying is weak, supply of iron ore is low and the current market scenario is not supporting any price rise.
It is mostly the Iron Pellet industry which are interested to buy some quantity of the raw material to keep their plant operating.
Out of 3,52,000 MT of iron ore, NMDC managed to sell around 40% of its material i.e. 1,44,000 MT.
Around 90,000 MT of iron ore lumps was purchased by steelmakers in Karnataka out of the large quantity i.e. 3,00,000 MT in total.
The entire quantity of iron ore fines, a total of 52,000 MT, that had also been offered was sold out.
Steel plants are facing the alarming crisis of low availability of iron ore fines in Indian domestic market due to which demand for fines was quite good.
The bid price was a 2.49% increase over floor price for high grade iron ore of Fe% 61.6 to 64 and 1,08,000 MT of the raw material was taken by JSW.
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