Karnataka Iron ore e-auction sales have shown some promising improvement as mills gradually ramped up output.
Karnataka has registered four-fold hike in monthly iron ore e-auction sales volume in the second month of the fiscal year FY’21 post resumption of steel operations in southern India based plants. Total iron ore allotted quantity in May’20 was recorded at 2.16 MnT compared to 0.54 MnT in Apr’20.
In the month of May’20, iron ore e-auction sales increased significantly to three months high from all-time low in Apr’20. Southern India (Karnataka) based steel makers have resumed operations and actively participated in the auctions held last month.
JSW Steel bought 64% of the material sold via e-auction in Karnataka-: India’s major private steel mill and also the largest buyer of Karnataka iron ore bought 64% to the total iron ore sold in Karnataka e-auction last month. In the month of May’20 JSW sourced around 1.38 MnT iron ore, up sharply by 171% against 0.51 MnT in the month of Apr’20.
Out of 1.38 MnT iron ore sourced by JSW, NMDC supplied 0.58 MnT up by 29% against 0.45 MnT last month and thus contributed around 42% of total JSW sourcing.
Despite SMIORE mines being second-largest iron ore supplier to JSW Steel they have increased supply by four-fold to 0.25 MnT in May’20 against 0.06 MnT in Apr’20 followed by Karnataka State Minerals Corporation Ltd. 0.17 MnT, Vedanta and Ramanadurga Iron Ore Mine at 0.1 MnT each, rest 0.17 MnT by other miners.
NMDC sales up 57% M-o-M -: NMDC sold 0.74 MnT iron ore via Karnataka e-auctions on May 20 and increased significantly by 57% against last month at 0.47 MnT. With operations remaining on hold in Donimalai, all the sales made were from its Kumaraswamy mines.
SMIORE mines were recorded second-largest seller in Karnataka iron ore e-auction with more than six-fold sales enhancement to 0.39 MnT in May’20 against 0.06 MnT in Apr’20.
Buyer-wise allotted quantity of May’20 iron ore e-auctions
| Buyer | Fines | Lumps | Grand Total |
| JSW Steel Ltd | 1,197,400 | 184,000 | 1,381,400 |
| BMM Ispat Limited | 132,000 | – | 132,000 |
| MSPL Limited | 80,000 | – | 80,000 |
| Arjas Steel Private Limited | 40,000 | 28,000 | 68,000 |
| Minera Steel and Power Private Ltd | 52,000 | – | 52,000 |
| Others | 157,000 | 287,000 | 444,000 |
| Grand Total | 1,658,400 | 499,000 | 2,157,400 |
Qty in MT
Source: GOK, DMG, SteelMint Research
Some other highlights of May’20 Karnataka iron ore e-auctions-:
— Vedanta procured 28,000 MT, out of which iron ore lumps (Fe 61-63.17%) was 20,00 MT and 8,000 MT fines (Fe 62.19%) from Karnataka e-auction.
— Western India based pellet maker – Jindal SAW bought 4,000 MT iron ore fines ( Fe 62.36-62.19%) from P.Balasubba Setty in from Karnataka e-auction.
— NMDC Limited – a public limited company bought 24,000 MT iron ore fines ( Fe 61%) from its Kumarswamy mines via e-auction at INR 1,610/MT (Basic, Royalty, DMF and NMET Extra).
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