1.85 MnT iron ore was sold via e-auctions conducted in May’16. On monthly basis, monthly iron ore sales have remained nearly stable as 1.89 MnT was sold in Apr’16.
NMDC sold 0.85 MnT iron ore from its Donimalai and Kumaraswamy mines in May’16, down by 18% M-o-M. Private miners sold 1 MnT iron ore through May’16 e-auctions.
JSW Steel continues to remain the largest buyer in May’16 e-auctions with 71% share in total allotted quantity. Other major buyers were BMM Ispat and MSPL. SAIL (VISL) sourced 16,000 MT iron ore in May’16.
Bidder-wise allotted quantity in May’16 e-auctions-
|
Company |
Fines | Lump |
Total |
| JSW Steel | 884,000 | 432,000 | 1,316,000 |
| BMM Ispat | 108,000 | 108,000 | |
| MSPL | 52,000 | 52,000 | |
| Kalyani Steels | 8,000 | 28,000 | 36,000 |
| Kirloskar Ferrous Industries | 24,000 | 12,000 | 36,000 |
| Others | 132,000 | 170,000 | 302,000 |
| Total | 1,208,000 | 642,000 | 1,850,000 |
Qty in MT
Source: Karnataka DMG
Southern India based steel mills prefer domestic material- The month of May’16 did not notice any import shipment to southern parts of India. Southern India sponge iron units were seen using domestic material (lump or pellets) and kept themselves away from importing ore over volatility in global prices.
Base prices in May’16 Karnataka e-auctions remain unchanged
Iron ore base prices in May’16 e-auctions remain unchanged against Apr’16. Majority of lots fetched flat bids, however for some lots bids went up by upto INR 400/MT. The price scenario in May’16 Karnataka e-auction is as follows-
NMDC- For NMDC Donimalai mines, base prices for fines (Fe 60.2%) stood at INR 1,650/MT and bid prices were at INR 1,650-1,660/MT. Base prices for lump (Fe 62%) was at INR 1,910/MT and their bid prices stood at INR 1,910-1,920/MT. For NMDC Kumaraswamy mines, base prices for fines (Fe 57.1%) remained at INR 1,185/MT and for lump (Fe 63.1%) it was at INR 1,804/MT. Bid prices remained close to base prices.
Mysore Minerals-Base & bid prices for fines (Fe 61.2%) was at INR 1,569/MT and for lump (Fe 56.4%) prices stood INR 1,264/MT.
Private miners-Base price of lump (Fe 62.4%) was seen at INR 1,766/MT and its base price stood at INR 1,830/MT. For fines (Fe 61%) base & bid prices stood at INR 1,440/MT. (Grade & prices are weighted average. Prices indicated are basic)
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