In June’15, Karnataka E-Auction received mixed response. Iron ore sales drastically dropped down to 64% M-o-M.
3.4 MnT iron ore was offered via Karnataka e-auction in June’15. Out of the total, only 1.12 MnT material could have sold. Sales dropped down drastically to 64% M-o-M. In May’15 it was recorded as 3.1 MnT.
Last month, both NMDC and private miners contributed to almost equal sales. NMDC’s share among total sales was 0.55 MnT and that of private miners was 0.57 MnT.
Supplier Wise Allotted Quantity
| Supplier | Fines | Low Grade Lumps | Lumps | Grand Total |
| NMDC Kumarswamy Mines | 396,000 | – | 152,000 | 548,000 |
| Sesa Sterlite | 144,000 | – | 88,000 | 232,000 |
| Mysore Minerals | 48,000 | – | – | 48,000 |
| SMIORE | 36,000 | – | 12,000 | 48,000 |
| Chowgule and Company | 32,000 | – | 8,000 | 40,000 |
| Hanumantha Rao | – | – | 40,000 | 40,000 |
| Others | 75,000 | 4,000 | 80,000 | 159,000 |
| Grand Total | 731,000 | 4,000 | 380,000 | 1,115,000 |
Qty in MT
Source: Karnataka DMG
JSW Steel – A Major Buyer in Karnataka E-Auction
In June’15, JSW Steel, procured a much lesser quantity of iron ore as compared to last month. Earlier, JSW had procured almost 2 MnT (0.167 MnT fines & 0.52 MnT lumps) via Karnataka e-auction conducted in the month of May’15. This might be considered as a major reason for lesser procurement in June’15. In addition, the company also had some imported material at stockyard.
June’15 Karnataka E-Auction Received Mixed Response
Base as well as bid price of fines (Fe 50.6) offered by NMDC lies in the range of INR 1,380-1,390/MT. Bids received were almost flat as compared to floor price. While, for lumps (Fe 62.8), bids were at INR 2,550-2,540/MT levels.
Last month, private miners offered 3 types of material:
- Low grade lumps: For material offered of Fe 40 grade, base as well as bid price were at INR 725/MT.
- Iron Fines: For Fe 59.2 fines, bid price was increased marginally and stood at INR 11,65/MT.
- Iron Lumps: Bids received were at almost at same level as floor prices at INR 2,245/MT.
Note: Grade & prices mentioned above are weighted average.
Bidder-Wise Allotted Quantity
| Company | Fines | Low Grade Lumps | Lumps | Grand Total |
| JSW Steel | 447,000 | – | 128,000 | 575,000 |
| BMM Ispat | 116,000 | – | 12,000 | 128,000 |
| Kirloskar Ferrous Industries | 40,000 | 4,000 | 20,000 | 64,000 |
| JSW Steel Salem Works | – | – | 48,000 | 48,000 |
| Kalyani Steels | 12,000 | – | 24,000 | 36,000 |
| Others | 116,000 | – | 148,000 | 264,000 |
| Grand Total | 731,000 | 4,000 | 380,000 | 1,115,000 |
Quantity in MT
Source: Karnataka DMG
Note: Prices mentioned above are basic
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