Karnataka has registered a decrease in yearly sales e-auction volumes in FY’21. Total iron ore allotted quantity in FY ’21 was recorded at 29.2 mn t compared to 30.04 mn t in FY ’20.
JSW Steel’s iron ore sourcing from Karnataka e-auctions down 12% in FY’21-:India’s major private steel mill and also the largest buyer of Karnataka iron ore decreased its iron ore purchases significantly in FY ’21 from e-auctions. In the fiscal year, FY’21, JSW purchased around 15.9 mn t of iron ore from Karnataka e-auctions against 18.08 mn t in FY20.
JSW purchases fell because it has started sourcing iron ore from its captive mines. JSW Steel targets to produce around 13.5 mn t iron ore this fiscal from its four mines in Odisha that it won in auctions, shared Mr Ranjan Nayak in a webinar conducted by SteelMint in Jan’21. The company is also intending to enhance the production limits of three of its mining leases in the coming two to three years. JSW expects to produce around 7-8 mn t iron ore from nine captive mines in Karnataka in FY’21, which will be used at its Vijayanagar plant.
Out of 15.9 mn t iron ore sourced by JSW, NMDC supplied 5.51 mn t down by 3% against 5.69 mn t last fiscal and thus contributed around 35% of total JSW sourcing.
Vedanta remained the second-largest iron ore supplier to JSW Steel at 3.9 mn t against 5.38 mn t in FY’20.
Sales from NMDC fell 25% Y-o-Y -:NMDC sold 7.75 mn t of iron ore via Karnataka e-auctions in FY’21, against last year at 6.96 mn t (including nos. of Donimalai production). NMDC Donimalai resumed operations and recorded 0.71 mn t of sales in the fiscal year FY’21.
Iron ore sales from Vedanta was recorded at 5.04 mn t in FY’21 as against 6.29 mn t in FY’20.
Buyer-wise allotted quantity of FY’21 iron ore E-auctions
Qty in mn t
Source: GOK, DMG, SteelMint Research
Major highlights of FY’21 Karnataka iron ore e-auctions-:
1.Electrotherm India Ltd – a Gujarat based company bought 104,000 t iron ore (Fe 62.19-65%). Out of the total 16,000 t were fines and 88,000 t lumps from P.Balasubba Setty & Son (52,000 t), MSPL Vyasankere iron ore mines at 52,000 t.
2.Vedanta procured 532,000 t iron ore. A total of 220,000 t were iron ore fines (Fe 57.5-63.3) and 312,000 t were lumps (Fe 60.25%-65%).
3.Western India based pellet maker – Jindal SAW bought 296,000t iron ore from Karnataka e-auction.Out of the total,iron ore lumps (Fe 63.08-65% grade) were around 112,000 t and rest 184,000 t stood fines ( Fe 61.04-65%)
4.Rashtriya Ispat Nigam Limited – a public limited company bought around 236,000t iron ore fines and lumps and Karnataka e-auction from NMDC. Out of the total 32,000 t were fines (Fe 61.5%) and rest 204,000 t were lumps of 60.15%-63% grade.
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