Karnataka has registered a decrease of 21% on monthly sales e-auction volumes in May’19. Total iron ore allotted quantity in May’19 recorded at 2.3 MnT in May’19 compared to 2.9 MnT in April’19.
On yearly basis, Karnataka e-auction sales moved down by 30% in May’19 as compared to 1.77 MnT in May’18.
JSW Steel sourcing from Karnataka e-auctions down sharply by 50% in May’19-: JSW Steel’s iron ore purchases from Karnataka e-auctions decreased sharply by 50% to 1.08 MnT in May’19 compared to 2.18 MnT in Apr’19. Out of 1.08 MnT iron ore sourced by JSW, NMDC supplied 0.65 MnT increased by 80% against 0.36 MnT last month and thus contributed around 60% of total JSW sourcing. JSW Steel’s iron ore sourcing from private mines decreased by 35% to 0.43 MnT in May’19 as against 0.66 MnT in Apr’19.
B. Rudra Gouda remained second-largest iron ore supplier to JSW Steel at 0.13 MnT in May’19, followed by Narayan Mines Private Limited at 0.10 MnT.
NMDC turned out to be the largest iron ore supplier from Karnataka e-auctions in May’19-: NMDC sold 0.75 MnT iron ore via Karnataka e-auctions in May’19, increase by 20% M-o-M. Entire iron ore sold from its Kumaraswamy mines.
Iron ore operations are still on hold at NMDC’s Donimalai mine, which had renewed lease on 3rd Nov’18 for the next 20 years. But the state govt. put the additional condition to pay 80% premium on iron ore sale value from Donimalai to the Karnataka state Govt. The case was filed in the high court and both the side had kept their conclusive remark in the High Court. Judgment is still awaited.
Vyasankere Iron Ore Mines second largest iron ore supplier at 2.52 MnT followed by B. Rudra Gouda at 0.20 MnT.
Buyer-wise allotted quantity of May’19 iron ore e-auctions-:
| Buyer | Fines | Lumps | Grand Total |
| JSW Steel Limited | 844,000 | 236,000 | 1,080,000 |
| MSPL Limited | 188,000 | – | 188,000 |
| BMM Ispat Limited | 116,000 | 12,000 | 128,000 |
| Minera Steel And Power Private Limited | 96,000 | – | 96,000 |
| Thakur Industries | 44,000 | 28,896 | 72,896 |
| Others | 228,320 | 503,000 | 731,320 |
| Grand Total | 1,516,320 | 779,896 | 2,296,216 |
Qty in MT
Source: GOK, DMG, SteelMint Research
Major Highlights of May’19 Karnataka iron ore e-auctions-:
1. Electrotherm India Ltd – a Gujarat based company procured 8,000 MT iron ore lumps (Fe 63.5-65%) at INR 3,300-3,860/MT.
2. Vedanta procured 32,000 MT iron ore lumps (Fe 62%-64.1%). They procured 20,000 MT ore from P. Balasubba Setty & Son and 8,000 MT lumps from Veerabhadrappa Sangappa & Company for its pig iron plant in Goa and rest 4,000 MT lumps from its own mines in Karnataka.
3. Southern India based pellet maker – XIndia Steel became the consistent iron ore fines buyer from Karnataka e-auctions. Last in month in May’19 they had purchased 28,000 MT fines.
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