India: Karnataka Iron Ore E-auctions in Dec’14

Karantaka’s e-auction observed underwhelming response in Dec’14 owing to rising Iron ore imports.

Out of 2.8 MnT Iron ore (1.78 MnT fines, 1.05 MnT lump & 0.004 MnT low grade lump) offered, 1.2 MnT (0.89 MnT fines, 0.31 MnT lump & 0.004 MnT low grade lump) was sold via e-auctions in Dec’14.

Key Highlights 

  1. Iron lump auction had received low response from Sponge & Steel manufacturers owing to grade issues
  2. NMDC’s Karnataka e-auction had received flat bids. Floor & bid prices for lump (Fe 62%) were INR 3,615/MT and for fines (Fe 60%) were INR 2,545/MT
  3. Private mines floor & bid prices for fines (Fe 62%) stood at INR 3,040/MT. Bid prices for lump (Fe 64%) offered by private mines stood at INR 4,170/MT (prices excluding royalty of 15%, Forest Development Tax of 12%)
  4. Major supplier was NMDC, followed by Mysore Minerals & P Balasubba Setty & Sons

Supplier-wise Allotted Quantity

Supplier Fines Low Grade Lump Lump Grand Total
NMDC 456,000 160,000 616,000
Mysore Minerals 316,000 40,000 356,000
P. Balasubba Setty & Sons 32,000 44,000 76,000
R. Praveen Chandra 8,000 24,000 32,000
Vyasankere Iron Ore Mines 28,000 4,000 32,000
Shree Gavisiddeshwara Minerals 24,000 24,000
Others 28,000 4,000 40,000 72,000
Total 892,000 4,000 312,000 1,208,000

Quantity in MT
Source: SteelMint Research

Largest buyer was JSW Steel at 0.8 MnT, which amounts to 67% of the total allotted quantity. Other major buyers include MSPL & Gerdau Steel India.

Top 5 Iron Ore Buyers in Dec’14

Company Fines Lump Low Grade Lump Grand Total
JSW Steel 668,000 136,000 804,000
MSPL 48,000 48,000
Gerdau Steel India 24,000 20,000 44,000
BMM Ispat 36,000 36,000
Sathavahana Ispat 16,000 12,000 28,000
Others 100,000 144,000 4,000 248,000
Total 892,000 312,000 4,000 1,208,000

Quantity in MT
Source: SteelMint Research

Note: Figures & data updated till the e-auction held on 26 Dec’14.
Grade & prices are weighted average.


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