Monthly Archives: June 2013

KIOCL (India) Floats E-Tender for Iron Pellet Sales in July

KIOCL (formerly Kudremukh Iron Ore Company Limited), the state owned and largest producer of Fe 63 Iron Pellet in India, has floated an e-tender for domestic Pellet sales during the month of July.

The e-tender is to be held between 1200 hrs IST on 29 June and 1200 hrs IST on 01 July among its enrolled customers.

Offers are anticipated to either stand at similar levels or witness only a marginal drop by around Rs 100/MT. There is limited room for any upward movement in prices.

Sponge iron prices in Karnataka have gone up by only Rs 400/MT in last one month, which has not supported sales of Pellet in big quantities. 

The Mangalore based Pellet producer with an installed capacity of 3.5 MnTPA did not produce any Pellets during this month as it was holding about 1.5 lac tons of unsold quantity.

Market was not so encouraging in the current month, but KIOCL managed to conclude some good deals in the domestic market.

In mid-June, it closed a deal of 40,000 tons of Pellet at Rs 7,450/MT Free on Board (FoB) basis, to steelmaker based in the West Coast of India.

The manufacturer is expecting its total sales volume of Pellets to stand at around 1 lac tons for June and is hopeful of improvement in volumes further.

For more details, contact

Seema Goenka



NMDC kumarswamy e-auction 25th July. Iron ore fine sold at 21% more then floor price.

NMDC Kumarswamy mine located in Karnataka has declared the
result for the e-auction conducted on 25th of July. The total
quantity offered for sale is 140000 MT but they declared result of Iron ore
fines only I.e. 44000 MT.

Total number of bids 110, Number of bidders 6 & number of winners 4

Detail of quantity

Calibrated Lumps

Iron Ore fines


Detail of quantity

Quantity offered
20000, Fe% 60, Iron ore fines

Kalyani steels,
Booking price 2810, Quantity purchased 4000

Mukand LTD, Booking
price 2800, Quantity purchased 4000

JSW Steel LTD,
Booking price 2760, Quantity purchased 12000

Floor price for iron ore fines is 1910


Quantity offered
24000, Fe% 61, Iron ore fines

Xindia LTD,
Booking price 2085, Quantity purchased 4000

Mukand LTD, Booking
price 2085, Quantity purchased 4000

JSW Steel LTD,
Booking price 2075, Quantity purchased 16000

Floor price for iron ore fines is 2035


Bookin price is 21.14 more then the floor price.

63% of iron ore fines was purchased by JSW Steel ltd.




RINL's Pig Iron Export Tender Receives No Response the 3rd Time

Rashtriya Ispat Nigam Limited (RINL), the state owned Basic grade Pig iron producer, offered 30,000 tons of the material, initially on 06 June.

It had postponed the tender opening date on 24th of this month, for the third time.

The tender has failed to receive any response again (the third time); the technical bids opened at 3:30 p.m. today.

“We were not interested to close any deals with Indian exporters for July shipment, as the stock position is already high, but were looking for something during August.

Due to free fall of international Pig iron prices, we could not find many buyers this month and were unable to get rid of the inventory.

RINL was willing to sell the cargo at $380/MT FoB Vizag Port and not below that, which was quiet difficult when Rupee slightly appreciated to 59 levels”, importers told SteelMint.

Other factors such as the weakening Indian currency and downtrend in overseas Pig iron offers presently i.e. $370-375/MT CFR Korea and $370/MT FoB Black Sea, did not support any buying desire.

RINL is Expected to Come Out with a New Export Tender

In the first week of July, the company is expected to float a new 30,000 tons Pig iron export tender.

The shipment period might be decided for mid-July, as it is looking to clear stocks at the earliest feasibility and take advantage of the exchange rate of INR.

RINL Might Roll Over July Pig Iron Prices

Currently, the manufacturer is offering Pig iron at Rs 22,500/MT (ex works) to domestic takers.

Discount of Rs 400/MT is quoted on bookings being received for 8,000 tons and above quantity.

It is anticipated that RINL might continue offering its material at similar prices the next month also, as offers are already standing at low levels.

For more details, contact

Seema Goenka



India-OMC Iron Ore tender fetches lower bids by Rs 5,00-1,000/t

The Odisha Mining Corporation Ltd.(OMC),a Govenment of Odisha miner had received bids lower by up to Rs 1,000/t for iron ore lumps, which had been tendered last month. Company put for sale 76,100 tonnes of sized iron ore of various grades  being produced at different iron ore mines of OMC Ltd. at Barbil, Gandhamardan & Daitari Region in Keonjhar District and Koira Region in Sundargarh District (Odisha).

Participants mention that prices have been cut due to falling sponge iron prices across India. They also mention that Chattisgarh based steel units have placed highest bids. Current H1 bids are as follows

Mines, Size, Grade, Current Price, Previous Price, Bidder, State

Barbil 10-40mm 62%= Rs 3,701/t, Rs 4,005/t – Vandana Global- Chattisgarh

Gandhamardhan 10-40mm 62%= Rs 3,701/t, Rs 3,801/t –  Vandana Global

Gandhamardhan  5-18mm 64%= Rs 5,007/t,  Rs – Aarti Sponge , Chattisgarh

Koira10-40mm 62%= Rs 4,151/t, Rs 5050/t – Monnet Ispat, Chattisgarh

Koira 5-18mm 65%= Rs 5,151/t, Rs 6,200/t – Govinda Projects, Odisha

Daitari 10-40mm 62%= Rs 3,500/t, Rs 4,000/t Maithan Ispat, Odisha

Recently Rungta mines and Essel Mining had also cut their iron ore lumps prices by Rs 300-400/t earlier this month.


Imported scrap offers to India fall sharply as Rupee hits 60/USD

Indian rupee hitting 60/USD on Wednesday, making it the weakest currency in Asia, which has corrected over 12% since May 2013. Falling rupee has made global scrap suppliers to cut their offers to Indian buyers.

“There are absolutely no trade in last 2 weeks. Offers from middle east have come down by almost $10-15/t owing to weak Rupee. Current offers for Dubai scrap (HMS 1&2) are at $345-350/t CFR Mumbai. Though buying interest may generate at $340-342/t.
” said an importer based in India's west coast.

On similar lines another importer based in Kandla have reported to getting offers from European suppliers at $347/t CFR for HMS 80:20, which is also down by almost $10-15/t from last weeks offer.


India-OMC may start iron ore e-auction from October

Bhubaneswar: While the Odisha government is
struggling to bring the private miners aboard for the proposed e-auction of
minerals, the Odisha Mining Corporation (OMC) may start e-auction of iron ore
from October this year. The Odisha government controlled miner is already
conducting e-auction for sale of its Chrome ore.

However, the state government is trying to bring the
private miners into the e-auction umbrella to make it more comprehensive. The
state government had given in-principle nod for starting the auction process
but is awaiting a directive from the Supreme Court appointed central empowered
committee (CEC) to enforce it on private miners. The issue is expected to
be finalized during the meeting between the Odisha government and the CEC in

Meanwhile, In July the state steel and mines
department has decided to send some of its officials in the rank of DDM to
Bangalore for training on the e-auction process.

“The government is finding it tough to get the
leading private miners' consent for the e-auction, but the government
controlled miner OMC may start iron ore e-auction from October. On the other
hand few officials will be sent to Bangalore for training on the e-auction
technique” said a senior official of the Directorate of Mines.

may be noted that, the CEC has urged the Odisha government to analyse
price trends of ore sold by top miners including state owned Odisha Mining
Corporation (OMC) and compare the same with prevailing auction prices. 


NMDC Bailadila Mines Offered Iron Ore Through e-auction on 9th of July

NMDC Bailadila mines (KIrandul & Bacheli) has offered Iron ore through e-auction. The total quantity offered for sale is 1, 12,000 MT. The material will be delivered on FOR/FOT Mine basis.

Last date for submission of EMD & online forward auction (OFA) document is up to 12:00 IST on 09.07.2013.

Auction date is 09.07.2013 between 13:00 to 15:00 IST


Details of quantity offered:


Calibrated lumps ore, Fe 67%, 16,000MT

Iron ore fines 80,000MT, Fe 64%

ROM 16,000MT, Fe 65.5%


Royalty, Sales tax and other statutory duties & levies are applicable.




Indian Coal buyers should focus US and Colombia- Dr. Narayanan

Dr. M.P. Narayanan Vice Chairman World Mining Congress, in a statement at ongoing Coal conference in Delhi said, India should look for other option to import coal like US, and Colombia. He also stated coal mafia is a major concern in infrastructure development in India esp Railway, so our focus should look into this concern to solve the issue. 

India is hungry for coal and domestically there is neither the quantity nor the quality to feed the country's needs. The situation is exacerbated because coal consumption has soared in the construction (steel, cement) and power generation sectors. Given ongoing high demand, the problem is expected to become even more pressing.

Following China's example, India is seeking new and distant coal locations in the US, Colombia and Russia to add to supplies from Indonesia, Australia and South Africa, the usual sources of the recent past. It is expected that American and Colombian coal will be shipped to India before the end of the year. China, paving the way, has imported several million tons of coal from Colombia this year. The Chinese generally blaze the coal import trail for India to follow. This is a routine that is already happening in South Africa.


India: Bhavnagar Ship Cutting and Scrap price inch up further by Rs 300/t

Indian ferrous scrap offers moved up further by Rs 300/MT on improved buying and scarcity of domestic scrap in North India. This is second consecutive hike in price this week in Bhavnagar. India imported ferrous scrap offer also firm but due to depreciating rupee it becomes nonviable to steel unit based in Mumbai, Gujarat and Punjab who consumed 70-80% melting scrap.

Bhavnagar: HMS scrap from ship breaking traded at Rs 23,700/MT i.e. up by Rs 300/MT from yesterday trade. Offers for rolling plates Plate cutting scrap have also moved up by up to Rs 300-400/MT. Scrap of 4 ANI plate traded at Rs 25,100/MT, 6 ANI at Rs 26,100/MT and 12 ANI at Rs 27,300/MT.

Sponge Iron offer in Raipur remain at same level of Rs 18900-19000/MT Basic Price (FeM 80) but seller are eyeing demand to increase from North India due to scrap shortage. Demand of Finish Long has also improved due to limited production and supply gap. Market participant believe price will remain firm or inch up further due to scrap shortage in coming days.