India: Karnataka Iron Ore E-auction Sales Down 7% in Nov’19

Karnataka iron ore e-auction sales volume down for the month and registered a decline of 7% in Nov’19. Total iron ore allotted quantity was recorded at 2.62 MnT in Nov’19 compared to 2.82 MnT in Oct’19. On yearly basis, Karnataka e-auction sales also down by 5% in Nov’19 as compared to 2.79 MnT in Nov’18.

JSW Steel’s iron ore sourcing from Karnataka e-auctions down sharply by 27% in Nov’19-: JSW Steel’s iron ore purchases from Karnataka e-auctions decreased significantly by 27% to 1.4 MnT in Nov’19 compared to 1.92 MnT in Oct’19. Out of 1.40 MnT iron ore sourced by JSW, NMDC supplied 0.76 MnT up 54% as against 0.49 MnT last month and thus contributed around 54% of total JSW sourcing.

JSW iron ore sourcing from other private mines increased by 11% to 0.64 MnT as against 0. 58 MnT in last month.

NMDC turned out to be the largest iron ore supplier from Karnataka e-auctions in Nov’19-: NMDC was the largest iron ore supplier via Karnataka e-auction and sold 0.92 MnT iron ore via e-auctions in Nov’19, up by 61% M-o-M against 0.57 MnT last month. Out of the total quantity sold by NMDC via e-auction, around 83% of the material purchased by JSW Steel and rest 17% by others.

Followed by SMIORE at 0.22 MnT, Iyli Gurunath Iron Ore Mine stood at 0.21 MnT.

Buyer-wise allotted quantity of Nov’19-:

Company Fines Lumps Grand Total
JSW Steel Ltd 1,052,000 348,000 1,400,000
BMM Ispat Limited 176,000 176,000
MSPL Limited 120,000 120,000
Rashtriya Ispat Nigam Limited Visakhapatnam Steel Plant 76,000 76,000
Janki Corp Limited 64,000 4,000 68,000
Minera Steel and Power Private Limited 64,000 64,000
Others 173,000 546,000 719,000
Grand Total 1,649,000 974,000 2,623,000

Qty in MT
Source: GOK, DMG, SteelMint Research

Major Highlights of Nov’19 Karnataka iron ore e-auctions-:

1. Rashtriya Ispat Nigam Limited (RINL) a public enterprise has bought 76,000 MT iron ore Lumps (Fe 63.2%) from NMDC Kumaraswamy Mines at INR 2,911-2,951/MT from Karnataka e-auctions.

2. Electrotherm India Ltd – a Gujarat based company procured 16,000 MT iron ore lumps Fe 64.79% at INR 3,500-3,820/MT and Fe 63.81% at INR 3,600/MT from P. Balasubba Setty & Son.

3. Similarly, another western India based pellet maker – Jindal SAW has procured around 24,000 MT iron ore. Out of total 16,000 fines for Fe 63.22- 64% at INR 2,570 and 2630/MT respectively from P. Balasubba Setty & Son (12,000MT) and G.G Brothers (4,000MT). Rest 8,000 MT Lumps (Fe 63.81%) from P. Balasubba Setty & Son at INR 3,600/MT.

4. Vedanta Ltd procured around 40,000 MT iron ore lumps from e-auction, Vyasankere iron ore mines (Fe 65%) 20,000 MT, P. Balasubba Setty (16,000 MT) and G.G Brothers (4,000 MT) at the range of INR 2,875 -3,810/MT (basic prices, taxes extra).


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