Monthly iron ore sales volume in Karnataka e-auction has increased sharply in Nov’18. Karnataka e-auction sales have increased by 70% M-o-M in Nov’18. The total allotted quantity of iron ore stood at 2.79 MnT in Nov’18 compared to 1.64 MnT in Oct’18.
JSW Steel’s iron ore sourcing in increased sharply to 1.54 MnT-: JSW Steel’s iron ore purchases from Karnataka e-auctions increased significantly by more than doubled to 1.54 MnT in Nov’18 compared to 0.71 MnT in Oct’18. Out of 1.54 MnT iron ore sourced by JSW, NMDC supplied 0.63 MnT and contributed around 41% of total JSW sourcing. JSW Steel’s iron ore sourcing from private mines have increased by almost four times to 0.91 MnT in Nov’18 as against 0.25 MnT in Oct’18.
Iron ore sales from NMDC Donimalai mines remain nil -: NMDC’s iron ore sales increased by 49% M-o-M to 1.01 MnT in Nov’18 compared to 0. 0.68MnT in Oct’18. NMDC sold all its iron ore from its Kumaraswamy mines recorded a sharp increase in its sales volume by almost double to 1.01 MnT in Nov’18 compared to 0.51 MnT in Oct’18. State govt has asked NMDC to pay 80% premium on iron ore sale value from Donimalai to the Karnataka state Govt. NMDC India’s biggest iron ore mine has been on the negotiation with the Govt of Karnataka over its decision to impose an 80% premium on iron ore sales from Donimalai as the company’s earlier license did not include the premium, as per reports.
Buyer-wise allotted quantity of Oct’18 iron ore e-Auctions-:
| Buyer | Fines | Lumps | ROM | Grand Total |
| JSW Steel Ltd | 912,000 | 417,000 | 209,000 | 1,538,000 |
| Rashtriya Ispat Nigam Limited | 200,000 | 48,000 | – | 248,000 |
| MSPL Limited | 148,000 | – | – | 148,000 |
| BMM Ispat Limited | 132,000 | – | – | 132,000 |
| Gerdau Steel Pvt Ltd | 36,000 | 36,000 | – | 72,000 |
| Rai Bahadur Seth Shreeram Narasingdas Private Limited | 72,000 | – | – | 72,000 |
| Kirloskar Ferrous Industries Limited | 40,000 | 20,000 | – | 60,000 |
| Others | 192,000 | 332,000 | – | 524,000 |
| Grand Total | 1,732,000 | 853,000 | 209,000 | 2,794,000 |
Qty in MT
Source: GOK, DMG, SteelMint Research
Major Highlights of Nov’18 Karnataka iron ore e-auctions:
1. Rashtriya Ispat Nigam Limited – public sector enterprise purchased 248,000 MT iron ore from Karnataka e-auctions. Lumps (62.5%) 48,000 MT at INR 3,519-3,579/MT and 200,000 MT Fines (Fe 60.5%) at INR 2856-2876/MT. RINL had purchased the total quantity of iron ore from NMDC Kumaraswamy mines.
2. Vedanta procured 8,000 MT iron ore lumps in Nov’18 for its pig iron plant in Goa.
3. Electrotherm India Ltd a Gujarat based company procured 12,000 MT iron ore lumps in Nov’18.
4. NMDC had rolled over iron ore base prices for Karnataka e-auctions in Nov’18.
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