Iron ore sales via Karnataka e-auction have declined by 30% Y-o-Y, from 29.2 MnT in FY14 to 20.3 MnT in FY15.
Karnataka Iron ore e-auctions in FY15, received an underwhelming response. 20.3 MnT Iron ore was sold in FY15. Out of this, share of NMDC was 9.6 MnT and remaining 10.7 MnT was of private mines.
In FY14, additional 10 MnT sub-grade ore was allowed to be auctioned by the Karnataka government. While, in FY15 no such additional quantity was allowed to be auctioned.
Quarterly Iron Ore Prices in FY15
| Material Type | Grade (Fe%) | Quarters | |||
| Q4 | Q3 | Q2 | Q1 | ||
| Fines | 63 | 2,900 | 3,600 | 3,460 | 3,400 |
| 60 | 2,200 | 2,600 | 2,600 | 2,500 | |
| Lump | 65 | 3,860 | 4,300 | 4,500 | 4,700 |
| 63 | 3,400 | 3,860 | 3,950 | 3,870 | |
Bid Prices in INR/MT
Prices are weighted average; provisional data
Source: SteelMint Research
Largest buyer was JSW Steel (11.66 MnT) with 57% of the total allotted quantity. The steelmaker has reduced its purchases from Karnataka by 32% Y-o-Y. Other major buyers were BMM Ispat and Jayalaxmi Mineral.
Bidder-wise Allotted Quantity in FY15
| Company | Allotted Qty | Total | ||
| Fines | Lump | ROM | ||
| JSW Steel | 8.56 | 3.09 | 0.01 | 11.66 |
| BMM Ispat | 1.05 | 0.02 | – | 1.07 |
| Jayalaxmi Mineral | 0.1 | 0.04 | 0.58 | 0.72 |
| Others | 3.28 | 2.44 | 1.09 | 6.85 |
| Total | 12.99 | 5.59 | 1.68 | 20.3 |
Qty in MnT (includes low & sub grade ore)
Source: SteelMint Research
Karnataka Iron Ore Sales at 1.7 MnT in Mar’15
Out of 9.7 MnT Iron ore offered, 1.7 MnT was sold. Out of 0.5 MnT, NMDC sold 1 MnT in Mar’15 and remaining was sold by private miners.
NMDC’s price for lump (Fe 63%) was at INR 2,900/MT and for fines (61%) was at INR 2,100/MT. Private mines bid prices – lump (Fe 60.2) was at INR 2,400/MT, fines (Fe 62%) at INR 2,240/MT, sub grade fines (Fe 48%) at INR 150/MT and for low grade lump (Fe 40%) was at INR 825/MT. (Grade & prices are weighted average)
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