Sponge Grade Lump Fetches Higher Bids in Karnataka E-auctions

Bids for sponge grade lump in Karnataka e-auctions increased up to INR 900/MT in Sept’16.

Base prices in Karnataka e-auctions remained mostly unchanged this month. Base prices for NMDC Kumaraswamy mines are currently as follows: fines (Fe 59.2%) stood at INR 1,347/MT and lump (Fe 63.6%) at INR 1,822-1,847/MT. Mines prices for NMDC Donimalai, are as follows – lump (Fe 62.2) – INR 1,927/MT and fines (Fe 60.2%) – INR 1,650/MT.

Private miners- Base price of fines (Fe 65%) offered by Vyasankere mines is seen at INR 2,025/MT and for lump (Fe 65%), it is INR 2,125/MT. Sesa Sterlite base prices of fines (Fe 62%) is at INR 1,350/MT.

A market participant in talk with SteelMint shared “Sponge grade Ore (high tumbler index) is fetching higher bids in Karnataka e-auctions. Increasing sponge iron prices have pushed bid prices up in e-auctions”.

For instance, Karnataka based Sunvik Steels procured lump (Fe 61%, 10-40 mm) offered by Sesa Sterlite at bid price of INR 2,147/MT against INR 1,447/MT in the e-auction held on 27 Sept’16.

Similarly, NMDC’s Kumarswamy e-auction conducted on 15 Sept’16 also fetched higher bids for lots containing 10-20 mm lump. For example, lot containing lump (Fe 61.5%, 10-20 mm) was base priced at INR 1,464/MT. Bids fetched were in the range of INR 2,194 – 2,404/MT.

3 iron ore import vessels arrived in Sept’16 – KIOCL imported two iron ore (fines) import vessels of 68,800 MT and 72,400 MT from Iran and Brazil respectively in Sept’16 at Mangalore port. In addition, KIOCL is also seen sourcing iron ore fines from NMDC (Chhattisgarh) mines.

Essar Steel imported a vessel of 75,600 MT iron ore from South Africa at Vizag port.

Bellary pellet prices up by INR 500-600/MT M-o-M – In line with increasing P-DRI prices, domestic pellets prices in southern India also moved up by INR 500-600/MT M-o-M in Sept’16. Presently, Fe 63% pellet offers are seen in the range of INR 4,900-5,000/MT (basic).