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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