Monthly iron ore sales volume in Karnataka e-auctions have increased sharply by 44% M-o-M in Mar’18. Total iron ore allotted quantity stood at 2.77 MnT in Mar’18 compared to 1.92 MnT in Feb’18. Increased number of auctions conducted last month owing to financial year end resulted in higher sales volumes in Mar’18.
In FY18, iron ore sales through Karnataka e-auction was recorded at 28.05 MnT compared to 27.6 MnT in previous fiscal. In FY18, NMDC sold 13.16 MnT iron ore, while private miners sold 14.89 MnT iron ore.
NMDC iron ore sales increased significantly by 67% in Mar’18- NMDC’s iron ore sales increased sharply by 67% M-o-M to 1.39 MnT in Mar’18 compared to 0.83 MnT in Feb’18. NMDC Kumarswamy recorded an increased almost double its sales volume to 0.74 MnT in Mar’18 compared to 0.41 MnT in Feb’18 while sales from NMDC Donimalai mines has also been increased by 56% to 0.66 MnT in Mar’18 compared to 0.42 MnT in Feb’18.
JSW Steel’s iron ore sourcing from Karnataka up by 27% in Mar’18 –JSW Steel’s iron ore purchases from Karnataka e-auctions stood at 1.67 MnT in Mar’18 up by 27% M-o-M compared to 1.32MnT in Feb’18. Out of 1.67 MnT, NMDC supplied 1.14 MnT iron ore via e-auction in Mar’18, increased sharply by 61% as against 0.71 MnT in Feb’18.
Buyer-wise allotted quantity of Mar’18 iron ore e-Auctions-:
| Company | Fines | Low Grade Fines | Lumps | ROM | Sub-Grade ROM | Grand Total |
| JSW Steel Ltd | 1,255,996 | – | 416,000 | – | – | 1,671,996 |
| Rai Bahadur Seth Shreeram Narasingdas S Private Limited | 20,000 | – | 8,000 | – | 250,000 | 278,000 |
| BMM Ispat | 100,000 | – | – | – | – | 100,000 |
| MSPL Ltd | 84,000 | – | – | – | – | 84,000 |
| NMDC limited | 12,000 | 60,000 | – | – | – | 72,000 |
| Others | 204,184 | – | 349,963 | 9,170 | – | 563,317 |
| Grand Total | 1,676,180 | 60,000 | 773,963 | 9,170 | 250,000 | 2,769,313 |
Qty in MT
Source: Karnataka DMG
Major highlights of Mar’18 Karnataka iron ore e-auctions:
1. NMDC had decreased iron ore prices from INR 90-120/MT for Mar’18 deliveries. For NMDC Kumaraswamy mines base prices were- fines (Fe 62.5%) – INR 3,010/MT and lump (Fe 63%) – INR 3,360/MT. Base prices in Mar’18 for NMDC Donimalai fines (Fe 60.2%) stood at INR 2,765/MT and lump (Fe 62.5%) – INR 3,265/MT (basic prices).
2. Gujarat based steel maker – Electrotherm purchased 4,000 MT Fe 65% grade lumps at INR 3,550/MT (basic) from Vyasankere iron ore mines.
3. SMIORE stood 2nd highest supplier after NMDC and supplied 0.34 MnT iron ore in Mar’18. JSW Steel’s 20% of purchases made in Mar’18 were from SMIORE.
4. Vedanta supplier 28,000 MT Fe 63% and 61.5% grade lumps to steel mills at the bid price of INR 3,036-3,319/MT (basic).
5. NMDC procured 72,000 MT iron ore fines (along with low-grade fines) in Mar’18 e-auctions from NMDC’s Donimalai plant to be utilized in its pellet plant.
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