The monthly iron ore e-auction sales volume have dropped in the month of Nov’20. The total allotted quantity in Nov’20 was recorded at 1.94 mn t, down 16% compared with 2.3 mn t in Oct’20, as per data compiled with SteelMint. Tighter availability of high grade ore and material lifting issues impacted sales.
Bids rise sharply in Nov ’20 auctions : The iron ore e-auction received hike in bids upto INR 2,050/t due to low stocks. High grade ore lots fetched sharp hike in bids over the base price. This even led to hike in Bellary pellet offers to around INR 11,000/t towards end of Nov’20 against around INR 9,000/t towards Nov’20 beginning.
JSW Steel’s iron ore sourcing from Karnataka down 13% m-o-m : JSW Steel – the largest buyer of Karnataka iron ore bought 48% to the total iron ore sold in Karnataka e-auction last month. In the month of Nov’20, the company sourced around 0.94 mn t iron ore, down 13% against 1.08 mn t in Oct’20.
Out of 0.94 mn t iron ore sourced by JSW in Nov’20, Vedanta Ltd supplied 0.32 mn t in Nov’20 contributing 34% of total sourcing against 0.33 mnt in Oct’20. NMDC Kumarswamy mines supplied 0.22 mnt in Nov’20 compared to 0.35 mn t in Oct’20.
JSW Steel’s captive iron ore production (Odisha and Karnataka) stood at 1.89 mn t & 1.73 mnt respectively in Oct & Sept’20. Thus with increasing captive production, the steelmaker has lowered sourcing from the merchant market.
NMDC’s iron ore sales down 35% m-o-m: NMDC sold 0.41 mn t of iron ore via Karnataka e-auctions in Nov’ 20, down as compared to 0.63 mn t in Oct’20.
NMDC Donimalai has resumed operations on 04 Dec ’20 after receiving permission from the state government on interium measures. The miner has started operations on mutually agreed additional payment of 22.5% of sale price (excluding royalty and other livies). Mining operations were put on hold after the lease expired in Nov’18 and has an EC limit of 7 mn t pa.
Buyer-wise allotted quantity of Nov’20 iron ore e-auctions:
Qty in t
Source: GOK, DMG, SteelMint Research
Highlights of Nov’20 Karnataka iron ore e-auctions:
- Western India based pellet maker – Jindal SAW bought 40,000 t iron ore (16,000 lumps and 24,000 fines).
- Vedanta stood the largest supplier at 428,000 t iron ore in Nov’20 auctions followed by NMDC and Karnataka State Minerals Corporation Ltd
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