iron ore prices and e-auction

Steel 360 has analysed Indian Iron ore industry and figure out Iron ore prices and e-auction of two fiscal year i.e. FY14 & FY15.

Prices 

Iron Ore Prices continue to Crash

  •  Disparity between Fines & Lumps prices in Odisha was at around INR 3,950/MT by the end of FY14
  •  Sponge iron makers used more of Pellet on techno-economic viability
  •  Price variation between NMDC Fines & Lumps kept on contracting

Possibly, Prices will be under Stress

  •  In front of 20 MnT Iron Pellet capacity adding up this fiscal, merchant availability of Pellets will build up undoubtedly
  •  Requirement of Fines ought to remain unvarying
  •  Price differential between Fines, Lumps & Pellets may continue to thin down

E-auction

India sold about 29.2 MnT Iron Ore via E-auctions

  • MSTC sold about 29.2 MnT Iron ore all through Karnataka e-auctions
  • NMDC contributed 10 MnT to total sales; JSW Steel remained leading consumer at 17.7 MnT
  • DGM, Government of Goa put for sale 2.3  MnT Iron ore & got rid of 2.1 MnT via three  e-auctions

Iron Ore offering through E-auction should Ascend

  • E-auction of 12.9 MnT Iron ore still to take place in Goa; most quantity may well be exported as is low grade
  • Offered quantity from Karnataka may ascend considering a few A & B category mines can reopen