Karnataka iron ore e-auction sales volume decreased sharply by 46% m-o-m in April 2022. The total allotted quantity in the month was 1.91 million tonnes (mnt) compared with the previous month’s 3.56 mnt. This is likely due to high base price in March considering the fiscal year-end.
JSW’s iron ore sourcing from Karnataka auctions decreases: Purchases by JSW Steel, the largest buyer from Karnataka’s iron ore e-auctions, decreased by 56% in April. The company purchased around 0.97 mnt of iron ore from the Karnataka auctions last month against 2.91 mnt in March.
Out of the total volume, NMDC supplied 0.58 mnt (a significant drop compared to 1.035 mnt in March) of iron ore, accounting for around 60% of JSW Steel’s total sourcing.
Vedanta remained the second-largest iron ore supplier to JSW Steel at 0.18 mnt last month, a sharp drop against 0.564 mnt in March.
Buyer-wise allotted quantities in April iron ore e-auctions
Qty in tonnes (t)
Source: Karnataka state govt, DMG, SteelMint Research
All prices mentioned are basic, taxes extra
Sales from NMDC down 44% m-o-m: NMDC sold 0.8 mnt of iron ore via the Karnataka e-auctions in April against 1.43 mnt in March, (including volumes from the Donimalai mines). NMDC’s Donimalai mines sold around 0.6 mnt in April.
Iron ore sales from the other leading miner, Vedanta, were recorded at 0.3 mnt in April against 0.56 mnt a month ago.
Highlights of Karnataka iron ore e-auctions in April –
- Vedanta procured 96,000 tonnes (t) of iron ore, of which 68,000 t were fines (Fe 57.5%-65%) and 28,000 t were lump ore (Fe 62.1%-65%).
- Eastern India-based Electrosteel Castings Limited booked 12,000 t of iron ore lumps and fines (Fe 63.89%-64.56%) at INR 6,030-6,450/t from P. Balasubba Setty & Son.
- Gujarat-based SAL Steel procured 4,000 t of fines (Fe 65%) at INR 5,700/t from Vyasankere mines.
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