The recent e-auction held on 23 Jul, 2014 in Karnataka for 0.4 MnT Iron ore through MSTC has fetched flat bids from Steel & Pellet makers. A total quantity of 0.4 MnT was under hammer by private miners like Sesa Sterlite, Praveen Chandra, Sandur Manganese & Iron, GG Brothers and Hanumantha Rao.
Sesa Sterlite had offered a total of 264,000 MT (132,000 MT Fines and 132,000 MT Lumps, carrying an average grade of 58% & 60% respectively), were unsold owing to higher base price compared to other miners.
JSW Steel was the largest buyer at 52,000 MT followed by BMM Ispat.
JSW Steel has been allotted 1.35 MnT Iron ore from e-auction in July, higher than previous months owing to mining suspension in Odisha.
Key Points of E-auction
- Entire quantity of Iron ore offered by the mines namely SMIORE & R Praveen Chandra was sold out
- Sesa Sterlite offered 264,000 MT of the raw material, out of which nothing was sold, as the Lumps were expensive by INR 400/MT and Fines by INR 100-150/MT in contrast with the other mines
- High grade ore was in demand
- JSW increased its off-take from Karnataka after mining restrictions in Odisha
120,000 MT Iron Ore sold in Karnataka E-auction
|
Material Type |
Offered Qty |
Allotted Qty |
|
Fines |
220,000 |
76,000 |
|
Lumps |
180,000 |
44,000 |
|
Total |
400 ,000 |
120,000 |
Qty in MT
Source: SteelMint Research
Top 5 Iron Ore Buyers in E-auction
|
Bidder Name |
Cargo Type |
Allotted Qty |
W.A Grade (%) |
W.A Bid Price |
W.A Floor Price |
|
JSW Steel |
Fines |
24,000 |
60 |
2,583 |
2,383 |
|
Lumps |
28,000 |
61 |
3,571 |
3,554 |
|
|
BMM Ispat |
Fines |
20,000 |
55 |
1,764 |
1,720 |
|
Kirloskar Ferrous Industries |
Fines |
8,000 |
65 |
3,650 |
3,650 |
|
Janki Corp |
Fines |
8,000 |
59 |
2,375 |
2,200 |
|
Xindia Steel |
Fines |
8,000 |
63 |
3,328 |
3,323 |
|
Others |
Fines |
8,000 |
62.75 |
2,950 |
3,145 |
|
Lumps |
16,000 |
62.75 |
3,762 |
4,122 |
Qty in MT; Basic prices in INR/MT
W.A: Weighted Average
Source: SteelMint Research
Note: Grade & Bid prices are Weighted Average
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