India: Bids increase by 26% in SAIL's iron ore fines auction from Chhattisgarh

Steel Authority of India Limited (SAIL) conducted an e-auction today for 28,000 t iron ore fines (Fe 62%) from its Dalli mines, Chhattisgarh. The company had set the base price for the auction at INR 3,100/t (loaded to the wagon, including royalty). The auction received a good response with the entire quantity getting booked at INR 3,900/t (loaded to the wagon, including royalty of INR 650), SteelMint learned from its sources. Thus, bids have moved up by 26% over the set base price.

This was the company's first auction conducted from Chhattisgarh, as auctions were getting delayed due to lack of necessary clearances.

Prior to this, it conducted an e-auction for 64,000 t iron ore fines (Fe 61.3%) on 31 Aug'20 from its Barsua mines, Odisha. The company had set the base price for the auction at INR 1,850/t (loaded to wagon, taxes extra). The auction received a good response with 56,000 t getting booked at INR 1,850-1,860/t, SteelMint learned from its sources. The auction witnessed active participation from three parties.

In its last auction conducted on 20th Aug'20 did not receive any bids for 40,000 t iron ore fines (Fe 61.3%) from its Barsua mines, Odisha. The company had set the base price for the auction at INR 2,000/t (loaded to wagon, taxes extra). The high base price was the key reason for buyers not putting in bids, an auction participant told SteelMint. The final price for SAIL iron ore fines put up in the auction would be total INR 2,950/t after adding royalty, DMF and NMET payouts if the cargo was sold at the base price of INR 2,000/t.