Karnataka’s monthly iron ore e-auction sales have dropped for the month of Sep’20. The total allotted quantity in Sep’20 was recorded at 2.22 mn t when compared to 3.16 mn t in Aug’20. Sources highlighted that, monsoons hampered iron ore production 7 movement in Bellary area in Sept’20 impacted production and sales.
JSW Steel’s iron ore sourcing down by 26% m-o-m
JSW Steel – the largest buyer of Karnataka iron ore bought 56% to the total iron ore sold in Karnataka e-auction last month. In the month of Sep’20., the company sourced around 1.25 mn t iron ore, down against 1.68 mn t in Aug’20.
Out of 1.25 mn t iron ore sourced by JSW in Sept’20, NMDC Kumarswamy mines supplied 0.45 mnt in Sep’20, contributing 36% of total sourcing as compared to 0.26 mn t in Aug’20. Vedanta remained the second-largest iron ore supplier to JSW Steel and supplies increased 24% to 0.36 mn t in Sep’20 against 0.29 mn t in Aug’20.
NMDC’s iron ore sales up m-o-m – NMDC sold 0.63 mn t of iron ore via Karnataka e-auctions in Sep’ 20, up sharply against last month at 0.31 mn t. With operations remaining on hold in Donimalai, all the sales made were from its Kumaraswamy mines.
Karnataka government has granted permission to India’s largest iron ore miner, NMDC to start mining operations at Donimalai mines. The resumption of mining operations in Donimalai is expected to start shortly, Mr. Sumit Deb, CMD NMDC informed in the annual general meeting. NMDC’s Donimalai mine has an EC limit of 7 mn t pa.
Buyer-wise allotted quantity of Sep’20 iron ore e-auctions:
Qty in t
Source: GOK, DMG, SteelMint Research
Highlights of Sep’20 Karnataka iron ore e-auctions-:
- Western India based pellet maker – Jindal SAW bought 32,000 t iron ore, out of 20,000 t was of grade Fe 62.08-65% at INR 3,360 – 3,760/t and 12,000 t lumps of grade Fe 63.08% at the price of INR 3,870/t.
- Vedanta procured 48,000 t iron ore lumps (Fe 63-65%) at INR 3,502-3,860/t. The company also procured around 52,000 t fines at INR 1,674-3,350/t.
- KIOCL bought 8,000 t iron ore fines (Fe 62.2%) from NMDC at INR 2,453/t. (Prices mentioned are basic, taxes extra).
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