Karnataka iron ore e-auctions this July received mixed response. Sales incremented as compared to June’15. JSW Steel remained the largest buyer.
Karnataka iron ore e-auctions conducted in the month of July’15, in which NMDC as well as various private miners competitively offered there material for auctions, received mixed response. 2.6 MnT iron ore have been allotted in the month of July’15, whereas in June’15 the allotted quantity was 1.12 MnT.
If we talk about iron ore sales, it is incremented to some extent as compared to June’15. This was possibly because steelmakers preferred buying high grade ores from Karnataka’s auctions. Currently, imports are not been preferred as the material is itself available at cheaper prices in domestic market.
Out of NMDC’s total sales of 1.5 MnT iron ore, Donimalai’s ore was most preferred and majority of the material put under auction from this mine was sold. It was observed that buyers preferred high grade ore. In addition, share of private miners in total sales was 1.1 MnT.
Supplier-wise Allotted Quantity
| Supplier | Fines | Low Grade Fines | Lumps | Total |
| NMDC | 948,000 | 24,000 | 524,000 | 1,496,000 |
| Mysore Minerals | 184,000 | – | 104,000 | 288,000 |
| Sesa Sterlite | 152,000 | – | 28,000 | 180,000 |
| P Balasubba Setty & Son | 60,000 | – | 60,000 | 120,000 |
| R Praveen Chandra | 68,000 | – | 32,000 | 100,000 |
| Vyasankere Iron Ore Mines | 40,000 | – | 60,000 | 100,000 |
| Others | 276,000 | – | 76,000 | 352,000 |
| Grand Total | 1,728,000 | 24,000 | 884,000 | 2,636,000 |
Qty in MT
Source: Karnataka DMG
JSW Steel Remains the Largest Buyer in Karnataka E-Auction
JSW Steel procured 1.7 MnT iron ore from Karnataka auctions conducted in July’15, out of which, 1.0 MnT was fines and 0.62 MnT was lump. In June’15, the company procured a much lesser quantity due to sufficient availability of the material from previous month’s e-auctions as well as enough stock of imported inventories.
Pricing Scenario
NMDC Bid and Base Prices:
- Lumps: Bids received were flat for NMDC’s lump. Base and bid prices for lump (Fe 62.8) offered by NMDC stood at INR 2,600/MT.
- Fines: Base and bid prices for fines (Fe 60.3) were in the range of INR 1,122-1,130/MT.
- Low grade fines: Base and bid prices for low grade fines (Fe 59.3) stood at INR 1,043/MT. Very less buying interest was seen for this grade of ore.
Private Miners Bid & Base Prices:
- Lumps: Base and bid prices for lump (Fe 63) were in the range of INR 2,406 -2,427 MT.
- Fines: Base and bid prices for fines (Fe 59.7) were in the range of INR 1,140-11,50/MT.
Note: Prices mentioned above are basic excluding 15% royalty and 12% Forest development tax
Bidder-wise Allotted Quantity
| Bidder | Fines | Low Grade Fines | Lump | Total |
| JSW Steel | 1,084,000 | – | 628,000 | 1,712,000 |
| BMM Ispat | 216,000 | – | 8,000 | 224,000 |
| MSPL | 72,000 | – | 72,000 | |
| Gerdau Steel India | 48,000 | – | 16,000 | 64,000 |
| Minera Steel And Power | 60,000 | – | 60,000 | |
| Others | 248,000 | 24,000 | 232,000 | 504,000 |
| Grand Total | 1,728,000 | 24,000 | 884,000 | 2,636,000 |
Qty in MT
Source: Karnataka DMG
Note: Grade & prices mentioned above are weighted average.
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