- Sales from Barsua, Kalta fall amid cautious buying
- Bolani sales rise on stronger dump fines, CLO demand
Steel Authority of India Ltd. (SAIL) sold 296,450 t of iron ore through e-auctions in June 2026 out of 408,450 t offered, down by around 11% m-o-m from 331,380 t sold out of 587,340 t offered in May, according to data maintained by BigMint. The decline was primarily driven by lower sales from Barsua and Kalta mines, as weak steel prices, compressed sponge iron margins, and monsoon-related slowdown kept procurement activity largely need-based.
Bolani records higher sales on improved demand for dump fines, CLO
Bolani remained SAIL’s largest contributing mine, accounting for nearly 84% of total auction sales in June. Sales increased to 248,000 t against 316,000 t offered, compared with 236,000 t sold out of 416,000 t offered in May.
The improvement was driven by stronger demand for dump fines and calibrated lump ore (CLO). Dump fines sales increased to 100,000 t in June from 60,000 t in May, while CLO sales rose to 88,000 t from 56,000 t, indicating improved buying interest in competitively priced feedstock. However, fresh fines sales declined sharply to 60,000 t from 120,000 t, reflecting lower procurement by pellet manufacturers and beneficiation units amid softer pellet demand and adequate inventories.
Barsua sales decline on cautious procurement
Barsua sold 40,000 t in June against 84,000 t offered, compared with 63,600 t sold out of 139,560 t offered in May.
The lower sales reflected cautious buying by consumers amid subdued steel demand and weak sponge iron profitability. Procurement remained restricted to immediate requirements, limiting overall auction participation.
Notably, no iron ore tailings were sold from Barsua in June, compared with 59,600 t in May. Although fresh fines sales increased to 20,000 t from 4,000 t, and 20,000 t of CLO was sold during the month, these gains were insufficient to offset the complete absence of tailings sales, resulting in an overall decline in auction volumes.
Kalta dump fines sales slump amid weak demand for lower-grade material
Kalta recorded the sharpest decline among SAIL’s operating mines, with only 8,450 t of dump fines sold in June, compared with 31,780 t in May, marking a 73% m-o-m decline.
The steep correction reflects weak demand for lower-grade iron ore, as buyers increasingly preferred higher-grade feedstock to improve productivity and reduce processing costs. Cautious market sentiment, coupled with monsoon-related disruptions and weak profitability across the secondary steel sector, further curtailed procurement from the mine.
Outlook
SAIL’s auction sales are expected to remain under pressure through July, as monsoon-related disruptions and weak steel demand continue to weigh on buying activity. While competitively priced dump fines and CLO may continue to attract selective interest, overall procurement is likely to remain need-based until sponge iron margins and finished steel demand show a sustained improvement.
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