3.09 MnT iron ore sold via Nov’16 e-auctions, up by 61% M-o-M. E-auction base prices remained predominantly stable last month.
The month of Nov’16 witnessed rigorous participation in Karnataka e-auctions. 3.09 MnT iron ore was sold against 1.92 MnT in Oct’16, up by 61% M-o-M. This is the highest monthly iron ore sales so far in this fiscal. Prior to this in Sept’16, 2.64 MnT iron ore was sold via e-auctions.
NMDC sold 1.43 MnT iron ore via e-auctions in Nov’16- NMDC’s iron ore sales at e-auctions increased by 24% M-o-M and stood at 1.43 MnT in Nov’16. Remaining allotted quantity of 0.5 MnT was offered by Mysore Minerals and rest 1.16 MnT by private miners.
JSW Steel’s iron ore purchases from Karnataka highest ever at 2.43 MnT in Nov’16-JSW Steel’s iron ore purchases from Karnataka e-auctions hit highest ever and was recorded at 2.43 MnT in Nov’16. Other major iron ore buyers in Karnataka e-auction last month were – BMM Ispat and Thakur Industries. Market participants shared that, buyers were expecting hike in iron ore prices in Dec’16 owing to increase in global prices, following which they procured higher quantities in Nov’16 e-auctions.
Buyer-wise allotted quantity in Nov’16 e-auctions –
|
Company |
Fines | Lump |
Total |
| JSW Steel | 1,800,000 | 630,000 | 2,430,000 |
| BMM Ispat | 144,000 | – | 144,000 |
| Thakur Industries | 44,000 | 17,000 | 61,000 |
| Minera Steel And Power | 44,000 | 2,000 | 46,000 |
| Kalyani Steels | 8,000 | 28,000 | 36,000 |
| Others | 96,000 | 280,020 | 376,020 |
| Total | 2,136,000 | 957,020 | 3,093,020 |
Qty in MT
Source: Karnataka DMG
Major highlights of Nov’16 Karnataka e-auctions :
1. Base prices in e-auctions remained stable. For NMDC Kumaraswamy mines prices were- fines (Fe 60%) – INR 1,678/MT and lump (Fe 63.4%) – INR 2,207-2,302/MT. And base prices for NMDC Donimalai were as follows – lump (Fe 62.2) – INR 2,286/MT and fines (Fe 60.2%) – INR 1,899/MT
2. Sponge grade lump continued to remain preference for southern India based sponge units with some lots receiving quite higher bids than base price. Sponge grade lump (10-20 mm, Fe 61.5% of NMDC Kumaraswamy mines) received bids INR 100 higher than base price pf INR 1,770/MT. Similarly lump (10-20 mm, Fe 61.9%) received bids in the range of INR 2,025-2,135/MT against base price of INR 1,805/MT (basic).
3. Base prices of iron ore offered by private miners were as follows: fines (Fe 60%) offered by SMIORE was at INR 1,760/MT and for lump (Fe 61.8%) it stood at INR 2,180/MT (basic). Vyasankere mines lump (Fe 65%) base prices remained unchanged M-o-M at INR 2,530/MT (basic).
4. Andhra Pradesh based steel maker Jeevaka Industries who has switched to domestic iron ore sourcing few month’s back procured 15,000 MT lump (Fe 60.5-63.8 offered by SMIORE) at bid price of INR 2,150-2,580/MT.
5. Iron ore sourcing of other steel makers last month were as follows – SAIL (VISL) – 18,000 MT lump, Vedanta – 8,000 MT lump and Electrotherm India – 4,000 MT lump.
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