NMDC e-auctioned a huge quantity of Iron ore, i.e. a total of 5,80,000 MT in the state of Karnataka on the 19th of December.
The e-auction fetched almost similar bids as the floor/base price. The bid price was a 0.014% increase over the floor price.
In few of the last e-auctions, steel manufacturers in the southern part of India continued to bid high due to the low quality of iron ore and prices were around Rs 3,600-3,800/MT for 63+ fines.
For the same grade, steel producers have bid lower and offers have come down in the range of Rs 2,600-2,700/MT.
The total quantity of raw material e-auctioned was quite huge looking at the requirement of the steel plants based in the southern part of the country.
JSW remains the biggest buyer of iron ore in Karnataka's e-auctions.
A total of 3,44,000 MT of iron ore was sold out as buyers were uninterested to lift any extra quantity of iron ore other than their requirement.
Factors such as cash crunch in market, chances of getting some percentage of low grade iron ore mixed in the material sold out to buyers and uncertain market conditions for sometime now resulted in no extra purchasing of iron ore but as per need only.
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