Monthly iron ore sales volume in Karnataka e-auction has come down six months low in October. Karnataka e-auction sales have decreased sharply by 41% M-o-M in Oct’18. The total allotted quantity of iron ore stood at 1.64 MnT in Oct’18 compared to 2.76 MnT in Sept’18.
JSW Steel’s iron ore sourcing in Oct’18 fell to 0.71 MnT-:
JSW Steel’s iron ore purchases from Karnataka e-auctions slashed to half to 0.72 MnT in Oct’18 compared to 1.3 MnT in Sept’18. Out of 0.7 MnT iron ore sourced by JSW, NMDC supplied 0.47 MnT and contributed around 65% of total JSW sourcing. JSW Steel’s iron ore sourcing from private mines have decreased significantly by more than three folds to 0.25 MnT in Oct’18 as against 0.82 MnT in Sept’18.
NMDC iron ore sales decreased further in Oct’18-: NMDC’s iron ore sales decreased by 21% M-o-M to 0.68 MnT in Oct’18 compared to 0.86MnT in Sept’18. NMDC Kumarswamy recorded a sharp increase in its sales volume by 65% to 0.51 MnT in Oct’18 compared to 0.31MnT in Sept’18 while sales from NMDC Donimalai mines decreased by 69% to 0.17 MnT in Oct’18 compared to 0.55MnT in Sept’18.
Buyer-wise allotted quantity of Oct’18 iron ore e-Auctions-:
| Company | Fines | Lump | Grand Total |
| JSW Steel Ltd | 528,000 | 187,000 | 715,000 |
| Rashtriya Ispat Nigam Limited | – | 132,000 | 132,000 |
| Mspl Limited | 100,000 | – | 100,000 |
| Bmm Ispat Limited | 88,000 | – | 88,000 |
| Minera Steel And Power Private Limited | 52,000 | – | 52,000 |
| Kalyani Steels Limited | 8,000 | 33,000 | 41,000 |
| Others | 156,000 | 354,000 | 510,000 |
| Grand Total | 932,000 | 706,000 | 1,638,000 |
Qty in MT
Source: GOK, DMG, SteelMint Research
Major Highlights of Oct’18 Karnataka iron ore e-auctions:
1. Rashtriya Ispat Nigam Limited – public sector enterprise continue to purchased 1,80,000 MT iron ore from Lump Karnataka e-auctions from NMDC Donimalai Mines. RINL purchased total quantity from NMDC Doni Lump (Fe 62.5%) at INR 3,491/MT.
2. Jindal SAW – Western India Pellet maker has purchaser iron ore from Karnataka e-auction. They purchased 4,000MT lump (Fe 63%) from P. Balasubba Setty & Son mines at INR 3,500/MT.
3. Vedanta procured 8,000 MT iron ore lumps in Oct’18 for its pig iron plant in Goa.
4. Towards the end of Sept’18, NMDC raised base price by INR 350/MT in fines and INR 300/MT in lump.
5. NMDC kept the base prices unchanged in Karnataka e-auctions for the month of Nov’18 for both lumps and fines. NMDC Donimalai lease expired on 3rd Nov’18 but later it has been renewed by Karnataka Govt for 20 years. Other formalities are in the process.
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