Karnataka iron ore e-auction sales volume decreased on monthly basis, Karnataka e-auction sales down sharply by 38% in Jan’20 to 2.25 MnT as compared to 3.6 MnT in Dec’19. Karnataka’s monthly iron ore sales hit almost eight months low in Jan’19 as similar levels were last seen in May’16 at 2.3 MnT. As per the sources, Karnataka iron ore miners have sold out most of their material hence they had less material to offer in the month of Jan’20.
JSW Steel’s iron ore sourcing from Karnataka e-auctions declined by 42% in Jan’20-: JSW Steel’s iron ore purchases from Karnataka e-auctions decreased significantly by 42% to 1.26 MnT in Jan’20 compared to 2.17 MnT in Dec’19. Out of 1.26 MnT iron ore sourced by JSW in Jan’20, Vedanta supplied 0.54 MnT down 39% as against 0.89 MnT a month before in Dec’19 and thus contributed around 43% of total JSW sourcing.
NMDC supplied 0.33 MnT up 57% as against 0.21 MnT in Dec’19 and thus contributed around 26% of total JSW sourcing.
Vedanta turned out to be the largest iron ore supplier in Jan’20-: Vedanta was the largest iron ore supplier via Karnataka e-auction and sold 0.61 MnT iron ore via e-auctions in Jan’20, down by 38% M-o-M against 0.99 MnT a month before. Out of the total quantity sold by Vedanta via e-auction, around 89% of the material purchased by JSW Steel and rest 11% by others.
Other major suppliers for the month of Jan’20 was NMDC at 0.44 MnT increased by 47% against 0.3 MnT in Dec’19, B. Rudra Gouda stood at 0.16 MnT.
Buyer-wise allotted quantity in Jan’20-:
| Company | Fines | Lumps | Grand Total |
| JSW Steel Ltd | 967,000 | 292,000 | 1,259,000 |
| BMM Ispat Limited | 104,000 | – | 104,000 |
| MSPL Limited | 88,000 | – | 88,000 |
| Srikalahasthi Pipes Limited | 52,000 | 28,000 | 80,000 |
| Thakur Industries | 48,000 | 21,000 | 69,000 |
| Others | 254,000 | 391,000 | 645,000 |
| Grand Total | 1,513,000 | 732,000 | 2,245,000 |
Qty in MT
Source: GOK, DMG, SteelMint Research
Major highlights of Jan’20 Karnataka iron ore e-auctions-:
1. Electrotherm India Ltd – a Gujarat based company procured 8,000 MT iron ore lumps Fe 63.16% and 63.38% at INR 3,650-3,670/MT.
2. Similarly, another western India based pellet maker – Jindal SAW has procured around 4,000 MT iron ore lumps for Fe 63.16% at INR 3,630/MT.
3. Vedanta Ltd procured around 28,000 MT iron ore lumps (Fe 63.16-65%) from e-auction from Vyasankere Iron Ore Mines and P. Balasubba Setty & Son for its sponge plant in Goa.
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