Karnataka has registered a fall of 2% in monthly e-auction sales volume in Jul’19. Total iron ore allotted quantity was recorded at 2.41 MnT in Jul’19 compared to 2.47 MnT in Jun’19.
However, on yearly basis, Karnataka e-auction sales moved up by 12% in Jul’19 as compared to 2.15 MnT in Jul’18.
JSW Steel’s iron ore sourcing from Karnataka e-auctions decreased by 8% in Jul’19-: JSW Steel’s iron ore purchases from Karnataka e-auctions increased sharply by 8% to 1.49 MnT in Jul’19 compared to 1.63 MnT in Jun’19. Out of 1.49 MnT iron ore sourced by JSW, NMDC supplied 0.64 MnT down by 14% against 0. 75 MnT last month and thus contributed around 43% of total JSW sourcing. Company’s iron ore sourcing from private mines was down to 0.85 MnT in Jul’19 as against 0.88 MnT in Jun’19.
Narayan Mines Private Limited remained second-largest iron ore supplier to JSW Steel at 0.19 MnT in Jul’19, followed by Vedanta Ltd. at 0.16 MnT.
NMDC remains the largest iron ore supplier from Karnataka e-auctions in Jul’19-: NMDC sold 0.71 MnT iron ore via Karnataka e-auctions in Jul’19, lower by 17% M-o-M against 0.86 MnT last month. Out of the total quantity sold by NMDC via e-auction, around 90% of material purchased by JSW steel and rest 10% by others.
NMDC Donimalai mine is set to resume operations shortly, after the closure of the mine for more than eight months. Last month Karnataka High Court in its final judgment on Donimalai lease renewal case gave judgment in favor of NMDC thus need not pay a premium for a mining lease.
Vyasankere Iron Ore Mines stood second-largest iron ore supplier at 0.29 MnT followed by Ramanadurga Iron Ore Mine at 0.22 MnT.
Buyer-wise allotted quantity of Jul’19-:
| Buyer | Fines | Lumps | Grand Total |
| JSW Steel Ltd | 1,160,000 | 334,000 | 1,494,000 |
| MSPL Limited | 160,000 | – | 160,000 |
| BMM Ispat Limited | 112,000 | – | 112,000 |
| Rai Bahadur Seth Shreeram Narasingdas Private Limited | 84,356 | 8,000 | 92,356 |
| Kirloskar Ferrous Industries Limited | 32,000 | 32,000 | 64,000 |
| Others | 180,000 | 306,111 | 486,111 |
| Grand Total | 1,728,356 | 680,111 | 2,408,467 |
Qty in MT
Source: GOK, DMG, SteelMint Research
iron ore e-auctions-:
Major highlights of Jul’19 Karnataka iron ore e-auctions-:
1. Electrotherm India Ltd – a Gujarat based company procured 12,000 MT iron ore lumps (Fe 64-65%) at INR 3,525-3,850/MT.
2. Vedanta procured 60,000 MT iron ore lumps (Fe 63%-65%). They procured 24,000 MT ore from Vyasankere iron ore mines and 16,000 MT lumps from P. Balasubba Setty & Son and rest 20,000 MT from other miners.
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