Sunday, 16 Oct 2011
BS reported that some of the major steel producers including JSW Steel and Kalyani Steel showed little interest in buying iron ore during the fourth round of E auction due to a massive increase in prices.
As per report, prices of iron ore went up by 45% to 50% during the two-day auctions that ended on Saturday and touched a high of INR 3,900 per tonne, against the base price of INR 2,750.
The Supreme Court appointed monitoring committee had facilitated 876,000 tonnes of iron ore with a Fe grade of 55% to 67% for this round of auction.
Steel companies picked up 364,000 tonnes, or 41.5%, of this. About 232,000 tonnes were sold yesterday and the remaining on Saturday. Of the total 364,000 tonnes, 44,000 tonnes came from NMDC. JSW Steel, Kalyani Steel, Mukand Steel, BMM Ispat and MSPL Ltd were the major buyers.
Iron ore-starved JSW Steel, which requires 45,000 tonnes of the material a day to run its 10-million tonne steel plant at Toranagal in Bellary, picked up just 76,000 tonnes. The largest steel producer in Karnataka has so far bought 1.92 million tonnes of the ore.
Kalyani Steel managed to buy 20,000 tonnes. Till now, it has managed to buy 225,000 tonnes. But due to procedural delays, it could manage to transport 25,000 tonnes to its 700,000 tonne steel plant in Hospet.
Mr RK Goyal MD of Kalyani Steel said “The prices of high-grade iron ore have hit a peak of INR 6,800 per tonne, showing a rise of about 80 per cent, during the auctions, as buyers were desperate to buy ore. However, transporting the ore to our steel plant is still a big problem, as the department of mines and geology is still to fast track the process of issuing e permits.”
With the completion of the fourth round of auctions, the steel industry has managed to get close to 3.7 million tonnes of iron ore.
(sourced from BS)
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