India: SAIL Auctions First Lot of Iron Ore Fines; Bids Rise Upto INR 120

Govt owned unit - SAIL (Steel Authority of India) had scheduled its iron ore fines e-auction today (17th Feb'20). The auction conducted was for 100,000 MT iron ore fines (Fe 62.5%) from its Bolani iron ore mines in Odisha.

As per the sources, the entire quantity offered has been booked in today's e-auction. The material was booked at INR 2,260-2,270/MT (loaded to rake, Royalty, DMF, NMET & other taxes extra) against the set base price of INR 2,150/MT (loaded to rake, Royalty, DMF, NMET & other taxes extra). The material was heard to be booked by three Indian steel mills.

Earlier auction from Bolani mines was scheduled on 07th Feb 2020 which was later rescheduled to 14th Feb 2020 owing to pending clearances from state govt.

In Sept'19, Indian government took a decisive step in assuring the supply of raw material to the steel sector by allowing Steel Authority of India Ltd (SAIL) to sell 25% of its total annual mineral production in the merchant market. This was in order to avoid any kind of possible disruption that may occur because of mining auction due on March 2020.

The government of India has also given permission to sell 70 MnT of subgrade minerals in the captive mines of SAIL (Steel Authority of India Ltd) This would enable SAIL to lead the way in ensuring the availability of iron ore in the years up ahead for the steel sector.

Last year the company's iron ore production was 28 MnT.