India: SAIL sells iron ore fines at 16% over base price in auction

Steel Authority of India (SAIL) sold off 100,000 t, 62.5% Fe iron ore fines from its Bolani mines at an auction held on 7th Aug'20.

The auction fetched a decent response with the entire auctioned quantity booked at INR 1,790-1,800/t (loaded to rake; Royalty, DMF, NMET & other taxes extra), higher by 16% than the base price of INR 1,550/t, according to sources.

SAIL pays royalty rates applicable to 64% lump for Bolani & Barsua fines due to technical issues related to ore stacking at these mines. Bid prices rose amid tight availability of ores in Odisha as monsoon rains have affected mining and evacuation of iron ore while a majority of newly-auctioned iron ore mines in the state have yet to resume operations.

SAIL iron ore fines e-auction prices after adding royalty, DMF and NMET would be around INR 2,750/t (Loaded to wagon).

Other iron ore mines too have increased prices. Essel Mining - a major Odisha-based merchant miner - has increased its iron ore fines and lump list prices thrice in the last 15 days. Odisha Mining Corporation (OMC) sold out lump at an INR 500/t premium on base prices in an auction held on 31 July.

SAIL will hold an auction for 40,000 t iron ore fines from Barsua mines on 20th Aug'20.

Odisha - India's largest iron ore producing state - recorded output of 4.87 mn t fines, lump and concentrate in Jun'20, down by 21% from 6.18 mn t in May'20, according to provisional data of the Odisha government.