- Eastern India-based mills procure ore from Karnataka.
- Orissa Metaliks 4th largest bidder in June auctions.
Karnataka registered a 15% m-o-m drop in its monthly e-auction sales volumes in Jun’21. The total allotted iron ore quantity in Jun’21 was recorded at 2.49 million tonnes (mn t) compared to 2.94 mn t in May’21.
JSW’s iron ore sourcing from Karnataka auctions down: JSW Steel, one of India’s major private steel mills and the largest buyer of Karnataka’s auctioned iron ore, decreased its purchases by 39% in Jun’21. Last month, JSW Steel purchased around 0.98 mn t of iron ore from the Karnataka e-auctions against 1.62 mn t in May’21.
Out of the 0.98 mn t sourced , NMDC supplied 0.42 mn t (down from 0.65 mn t in May’21), accounting for around 43% of the total JSW Steel sourcing.
Vedanta remained the second-largest iron ore supplier to JSW Steel at 0.21 mn t against 0.37 mn t in May’21.
Sales from NMDC down 27% m-o-m: NMDC sold 0.78 mn t of iron ore via the Karnataka e-auctions in Jun’21, against 1.07 mn t in the previous month, (including production from the Donimalai mines). NMDC’s Donimalai mines sold around 0.23 mn t last month.
Iron ore sales from Vedanta were recorded at 0.28 mn t in Jun’21, against 0.42 mn t in May’21.
Buyer-wise allotted quantity in Jun’21 iron ore e-auctions
Qty in tonnes (t)
Source: GOK, DMG, SteelMint Research
All prices mentioned are basic, taxes extra
Highlights of Jun’21 Karnataka iron ore e-auctions:
- Vedanta procured 48,000 tonnes (t) of iron ore, of which 8,000 t were fines (Fe 61.32-65) and 40,000 t were lumps (Fe 62.22%-66%).
- Western India-based pellet maker Jindal SAW bought 24,000 t of iron ore fines (Fe 61.32-62.3) and 60,000 t of iron ore lumps (Fe 62.22-65%). The entire purchases done by the pellet maker were from private miners.
- Rashtriya Ispat Nigam Limited, a public limited company, bought around 108,000 t of iron ore lumps of Fe 61-64% from NMDC at INR 6,348-7,355/t. All prices mentioned are basic, taxes extra.
- Goa’s Chowgule procured 60,000 t of fines (Fe 63.1-65.1%) at INR 5,608-6,940/t.
- Eastern India-based Orissa Metaliks procured 104,000 t of iron ore fines (63.15-65%) at INR 5,516-6,930/t.
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