Karantaka’s e-auction observed underwhelming response in Dec’14 owing to rising Iron ore imports.
Out of 2.8 MnT Iron ore (1.78 MnT fines, 1.05 MnT lump & 0.004 MnT low grade lump) offered, 1.2 MnT (0.89 MnT fines, 0.31 MnT lump & 0.004 MnT low grade lump) was sold via e-auctions in Dec’14.
Key Highlights
- Iron lump auction had received low response from Sponge & Steel manufacturers owing to grade issues
- NMDC’s Karnataka e-auction had received flat bids. Floor & bid prices for lump (Fe 62%) were INR 3,615/MT and for fines (Fe 60%) were INR 2,545/MT
- Private mines floor & bid prices for fines (Fe 62%) stood at INR 3,040/MT. Bid prices for lump (Fe 64%) offered by private mines stood at INR 4,170/MT (prices excluding royalty of 15%, Forest Development Tax of 12%)
- Major supplier was NMDC, followed by Mysore Minerals & P Balasubba Setty & Sons
Supplier-wise Allotted Quantity
| Supplier | Fines | Low Grade Lump | Lump | Grand Total |
| NMDC | 456,000 | – | 160,000 | 616,000 |
| Mysore Minerals | 316,000 | – | 40,000 | 356,000 |
| P. Balasubba Setty & Sons | 32,000 | – | 44,000 | 76,000 |
| R. Praveen Chandra | 8,000 | – | 24,000 | 32,000 |
| Vyasankere Iron Ore Mines | 28,000 | – | 4,000 | 32,000 |
| Shree Gavisiddeshwara Minerals | 24,000 | – | – | 24,000 |
| Others | 28,000 | 4,000 | 40,000 | 72,000 |
| Total | 892,000 | 4,000 | 312,000 | 1,208,000 |
Quantity in MT
Source: SteelMint Research
Largest buyer was JSW Steel at 0.8 MnT, which amounts to 67% of the total allotted quantity. Other major buyers include MSPL & Gerdau Steel India.
Top 5 Iron Ore Buyers in Dec’14
| Company | Fines | Lump | Low Grade Lump | Grand Total |
| JSW Steel | 668,000 | 136,000 | – | 804,000 |
| MSPL | 48,000 | – | – | 48,000 |
| Gerdau Steel India | 24,000 | 20,000 | – | 44,000 |
| BMM Ispat | 36,000 | – | – | 36,000 |
| Sathavahana Ispat | 16,000 | 12,000 | – | 28,000 |
| Others | 100,000 | 144,000 | 4,000 | 248,000 |
| Total | 892,000 | 312,000 | 4,000 | 1,208,000 |
Quantity in MT
Source: SteelMint Research
Note: Figures & data updated till the e-auction held on 26 Dec’14.
Grade & prices are weighted average.
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