Iron ore sales through Karnataka e-auction have witnessed a downtrend and have declined from Aug’14 (1.4 MnT) to Sep’14 (1.1 MnT).
Out of 1.25 MnT Iron ore offered, 1.13 MnT was sold in Sep’14. Steel companies are preferring Iron ore imports, which have reduced Karnataka sales for two consecutive months from Jul’14 (2.3 MnT), Aug’14 (1.4 MnT) to Sep’14 (1.1 MnT).
JSW Steel, a prominent buyer of Karnataka e-auctions, is importing Iron ore, which in turn has reduced its off-take from Karnataka. Its off-take has fallen by 33% from 0.6 MnT in Aug’14 to 0.4 MnT in Sep’14.
JSW Steel’s Iron Ore Purchases
|
Particular |
Aug’14 |
Sep’14 |
|
Imports |
1 |
0.6 |
|
Karnataka E-auctions |
0.6 |
0.4 |
Qty in MnT
Source: SteelMint Research
Scarcity of fines in the domestic market has pushed Iron ore fines prices in Karnataka’s e-auction by NMDC. Fines prices rose by INR 100/MT to INR 2,650/MT (basic) for Fe (60%). Iron ore lump bid prices for Fe 62% stood at INR 3,990/MT.
Private mines bid prices for Iron ore fines (Fe 63%) were INR 3,520/MT (basic). Also, Iron ore lump (Fe 64%) bid prices were INR 4,370/MT (basic). Both fines & lump have exhibited marginal improvement in prices against last month.
Karnataka Iron Ore E-auction in Sep’14
|
Mines |
Bid Qty |
Allotted Qty |
|
|
NMDC |
576,000 |
484,000 |
|
|
Other Mines & Stockyards |
672,000 |
652,000 |
|
|
Total |
1,248,000 |
1,136,000 |
Qty in MT
Source: SteelMint Research
Largest buyer was JSW Steel with 0.4 MnT followed by Slv Steels & Alloys and BMM Ispat.
Top 5 Iron Ore Buyers in Sep’14
|
Company |
Fines |
Lump |
ROM |
Sub Grade ROM |
Total |
|
JSW Steel |
280,000 |
96,000 |
– |
– |
376,000 |
|
Slv Steels And Alloys |
– |
– |
– |
150,000 |
150,000 |
|
BMM Ispat |
92,000 |
– |
– |
– |
92,000 |
|
MSPL |
56,000 |
– |
12,000 |
– |
68,000 |
|
Janki Corp |
– |
– |
– |
58,000 |
58,000 |
|
Others |
176,000 |
172,000 |
16,000 |
28,000 |
392,000 |
|
Total |
604,000 |
268,000 |
28,000 |
236,000 |
1,136,000 |
Qty in MT
Source: SteelMint Research
Note: Grade & bid prices are weighted average.
E-auctions held on 25 & 30 Sep, 2014 have not been considered, as results are still awaited.
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