Karnataka iron ore e-auction sales volume has registered declined by 25% in the month of Sept’19. Total iron ore allotted quantity was recorded at 1.91 MnT in Sept’19 compared to 2.54 MnT in Aug’19.
However, on yearly basis, Karnataka e-auction sales moved down by 31% in Sept’19 as compared to 2.76 MnT in Sept’18. Decline in semi-finished and finished steel prices resulted in lower iron ore purchases in the month of Sept’19.
JSW Steel’s iron ore sourcing from Karnataka e-auctions decreased by 27% in Sept’19-: JSW Steel’s iron ore purchases from Karnataka e-auctions decreased significantly by 27% to 0.98 MnT in Sept’19 compared to 1.34 MnT in Aug’19. Out of 0.98 MnT iron ore sourced by JSW, NMDC was the largest iron ore supplier with 0.28 MnT down 35% as against 0.44 MnT last month and thus contributed around 29% of total JSW sourcing.
Vedanta turns out to be the second-largest supplier with 0.27 MnT, decreased sharply by around two-times against at 0.52MnT last month. The Company’s iron ore sourcing from other private mines stood at INR 0.42MnT.
NMDC turned out to be the largest iron ore supplier from Karnataka e-auctions in Sept’19-: NMDC was the largest iron ore supplier via Karnataka e-auction, sold 0.42 MnT iron ore via e-auctions in Sep’19, down by 26% M-o-M against 0.57 MnT last month. Out of the total quantity sold by NMDC via e-auction, around 68% of material purchased by JSW steel and rest 32% by others.
Ministry of Mines last month made development in the MMDR Amendment Act to get the issue of the NMDC Donimalai case resolved and grant renewal of it. The Central Government has made a renewal of mining leases of public sector companies mandatory without going through the auction process. The amendment paves way for renewal of NMDC Donimalai mines where an operation was suspended after lease expiry in Nov’18.
In Aug’19 Govt of Karnataka had decided to cancel the lease renewal order of NMDC’s Donimalai mines in Karnataka in an order dated 17 Aug ’19 and had further put for an auction sale of the expired mine lease block.
Vedanta stood the second-largest iron ore supplier via Karnataka e-auction in the month of Sept’19. Company iron ore sales had decreased by 405 to 0.39 MnT in Sept’19 as against 0.65 MnT in Aug’19.
Followed by Narayan Mines Private Limited at 0.24 MnT, Ramanadurga Iron Ore Mine stood at 0.14 MnT.
Buyer-wise allotted quantity of Sept’19-:
| Buyer | Fines | Lumps | ROM | Grand Total |
| JSW Steel Ltd | 836,000 | 144,000 | – | 980,000 |
| Rai Bahadur Seth Shreeram Narasingdas Private Limited | – | 10,000 | 128,530 | 138,530 |
| BMM Ispat Limited | 136,000 | – | – | 136,000 |
| Xindia Steels Limited | 56,000 | – | – | 56,000 |
| Thakur Industries | – | 840 | 45,925 | 46,765 |
| Others | 180,000 | 368,944 | – | 548,944 |
| Grand Total | 1,208,000 | 523,784 | 174,455 | 1,906,239 |
Qty in MT
Source: GOK, DMG, SteelMint Research
Major Highlights of Sept’19 Karnataka iron ore e-auctions-:
1. Electrotherm India Ltd – a Gujarat based company procured 4,000 MT iron ore lumps (Fe 64.32%) at INR 3,740/MT and fines 4,000 MT (Fe 64.5%) at INR 2,750/MT from G.G Brothers.
2. Jindal-SAW – Western India based company also procured 16,000 MT iron ore lumps (Fe 64.32%) at INR 3,740/MT from P. Balasubba Setty & Son. The company had also procured 8,000 MT fines (Fe 62.27%) at INR 2,600/MT (basic prices, taxes extra).
3. KIOCL procured around 8,000 MT iron ore fines (Fe 59%) from Iyli Gurunath Iron Ore Mine Karnataka at INR 2,065/MT (basic prices, taxes extra). Public limited company has participated in Karnataka e-auction after a gap of 6 years approximately.
Leave a Reply