JSW Steel’s iron ore purchases from Karnataka e-auctions stood at 0.75 MnT in Jul’18 down significantly by 29% M-o-M compared to 1.06 MnT in Jun’18. Out of 0.75 MnT iron ore sourced by JSW, NMDC had supplied 0.62 MnT in Jul’18.
JSW Steel’s sourcing from private mines decreased sharply from 0.61 MnT in Jun’18 to 0.13 MnT in Jul’18. NMDC turned out to be the largest iron ore supplier to JSW Steel in Jul’18 with 0.62 MnT followed by Smiore Mines (0.06MnT), Ramanadurga Iron Ore Mine (0.04 MnT) and others (0.3MnT).
JSW had purchased 0.4 MnT fines and 0.35 MnT lumps from NMDC in the July Karnataka e-auction. Out of this NMDC had supplied 0.3MnT fine and 0.33MnT Lumps, rest supplied by private miners 0.1MnTfines and 0.02MnT lumps.
On 10th July, NMDC announced base prices to remain unchanged in e-auctions. Later on 26th Jul’18, NMDC had reduced base prices in Karnataka e-auctions. Fines prices have come down by INR 300/MT and lump prices by INR 100/MT. NMDC Donimalai decreased fines (Fe 64%) base price around INR 300/MT to around INR 2,680/MT (basic) against last assessment INR 2,983/MT. Similarly, for Fe 65% lump prices came down by around INR 100/MT to around INR 3,224/MT (basic) against last assessment INR 3,325/MT. All prices mentioned are basic, royalty and other taxes extra.
Karnataka Iron ore Sales Four-Month High in Jul18-: Monthly iron ore sales volume in Karnataka e-auctions has further increased by 9% M-o-M in Jul’18. The total allotted quantity of iron ore stood at 2.15 MnT in Jul’18 compared to 1.97 MnT in Jun18. In Jul’18 Karnataka e-auction sales have hit four months high, earlier sales seen in Mar’18 at 2.77 MnT.
NMDC iron ore sales increased sharply by 49% in Jul’18- NMDC’s iron ore sales increased by 49% M-o-M to 1.1 MnT in Jul’18 compared to 0.74MnT in Jun’18. NMDC Kumarswamy recorded an increase of 40% in its sales volume to 0.45 MnT in Jul’18 compared to 0.32 MnT in Jun’18 while sales from NMDC Donimalai mines has increased significantly this month also by 55% to 0.65 MnT in Jul’18 compared to 0.42 MnT in Jun’18.
Buyer-wise allotted quantity of Jul’18 Iron Ore e-Auctions-
| Company | Fines | Lumps | Sub Grade ROM | Grand Total |
| JSW Steel Ltd | 400,000 | 352,000 | – | 752,000 |
| Rai Bahadur Seth Shreeram Narasingdas Private Limited | 44,000 | 4,800 | 250,000 | 298,800 |
| Rashtriya Ispat Nigam Limited Visakhapatnam Steel Plant | 280,000 | – | – | 280,000 |
| BMM Ispat Limited | 88,000 | – | – | 88,000 |
| MSPL Ltd | 84,000 | – | – | 84,000 |
| Srikala Hasthi Pipes Limited | 36,000 | 12,000 | – | 48,000 |
| Kirloskar Ferrous Industries Limited | 16,000 | 28,000 | – | 44,000 |
| Others | 228,000 | 332,000 | – | 560,000 |
| Grand Total | 1,176,000 | 728,800 | 250,000 | 2,154,800 |
Qty in MT
Source: Karnataka DMG, SteelMint Research
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