NMDC Iron Ore Lumps Auction fetches High Premium on Low Availability of Imported Cargoes

NMDC's 20,000 MT DR CLO (Calibrated lumps ore) fetches premium upto INR 650/t (USD 9) as coast based producers run short of imported iron ore lumps on limited availability.

NMDC - India's biggest iron ore producer conducted an e-auction today from its Chhattisgarh mines. Out of the total ore offered, 20,000 MT was DR-CLO.

According to market sources report to SteelMint, entire DR-CLO offered was booked. The lots fetched premium of INR 650/MT above base price. As per sources, the auction received a good response with around 5 rakes of DR CLO getting booked at above base price.

Global iron ore prices have strengthened post Vale dam disaster and narrowed down discounts on low-grade iron ore. This is expected to lower down import volumes to India in the coming months. Amid lower availability of imported cargoes, coast based steel mills had actively participated in NMDC e-auction.

On the other side, domestic iron ore and pellet prices continue to remain under pressure amid declining sponge prices.

Last month, on 22nd Feb NMDC, had raised iron ore prices from its CG mines by up to INR 490/MT (upto 17%).

NMDC iron ore sales up 4% from C.G mines in Feb'19

In Feb'19, iron ore sales from Chhattisgarh mines recorded at 2.25 MnT, accounting for 63% of total monthly sales. However, sales stood 4% up M-o-M, as against 2.16 MnT in Jan'19.