Monthly iron ore sales volume in Karnataka e-auctions has increased by 3% M-o-M in Aug’18. The total allotted quantity of iron ore stood at 2.21MnT in Aug’18 compared to 2.15 MnT in Jul18.
JSW Steel’s iron ore purchases from Karnataka e-auctions increased sharply by 61% M-o-M to 1.21 MnT in Aug’18 compared to 0.75 MnT in Jul’18. Out of 1.21 MnT iron ore sourced by JSW, NMDC supplied 0.85 MnT in Aug’18. JSW Steel’s iron ore sourcing from private mines increased significantly almost three times to 0.36 MnT in Aug’18 as against 0.13 MnT in Jul’18.
The company had shifted purchase pattern to imports and Odisha amid high base prices in Karnataka. Towards the end of July, NMDC had cut base prices in e-auctions by INR 300/MT for fines and lumps by INR 100/MT resulting in increased procurement by JSW Steel.
Buyer-wise allotted quantity of Aug’18 Iron Ore e-Auctions-
| Company | Fines | Lumps | Grand Total |
| JSW Steel Ltd | 1,032,000 | 176,000 | 1,208,000 |
| BMM Ispat Limited | 144,000 | – | 144,000 |
| Mspl Limited | 116,000 | – | 116,000 |
| Janki Corp Limited | 80,000 | – | 80,000 |
| Minera Steel And Power Private Limited | 64,000 | – | 64,000 |
| Others | 165,000 | 432,000 | 597,000 |
| Grand Total | 1,601,000 | 608,000 | 2,209,000 |
Qty in MT
Source: Karnataka DMG, SteelMint Research
Key highlights of August’18 Karnataka e-auctions:
1. Southern India based pellet maker – XIndia Steel procured 4,000 MT iron ore fines (Fe 65.6%). It has resumed pellet production after almost 2.5 years.
2. Vedanta procured 12,000 MT iron ore lumps in August for its pig iron plant in Goa.
3. Gujarat based steel maker – Electrotherm procured 8,000 MT iron ore lump from private miners in August.
NMDC iron ore sales decreased by 8% in Aug’18- NMDC’s iron ore sales decreased by 8% M-o-M to 1.01 MnT in Aug’18 compared to 1.1 MnT in Jul’18. However, NMDC Kumarswamy recorded a sharp increase of 82% in its sales volume to 0.82 MnT in Aug’18 compared to 0.45 MnT in Jul’18 while sales from NMDC Donimalai mines has decreased significantly this month by 71% to 0.19 MnT in Aug’18 compared to 0.65 MnT in Jul’18.
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