Karnataka Iron Ore E-Auction in Oct’15: Highlights

NMDC and private miners aggressively offered their material in Karnataka e-auctions conducted in the month of Oct’15. Total 2.15 MnT iron ore was allotted from the auctions against 2.16 MnT in Sept’15.

As per market sources, private miners in Karnataka had offered their material at cheaper prices than NMDC due to economic viability as now-a-days they are not following pricing methodology of NMDC.

Private miners sold 1.08 MnT (668,000 MT fines & 288,000 MT lumps )and NMDC sold 1.06 MnT (644,000 MT fines & 423,000 MT lumps), out of the total allotted quantity i.e. 2.15 MnT (NMDC’s Donimalai sold 524,000 MT iron ore and Kumarswamy sold 543,000 MT).

Majority of lots received flat bids in Oct’15

Although the bids received in the Karnataka e-auctions conducted in the month of Oct’15 remained flat, base price of the material offered in the e-auction was itself lesser than that of the base prices of the material offered in Sept’15.

NMDC: Bids received were flat for NMDC’s lumps. Base and bid prices for lumps (Fe 62.6) offered by NMDC stood at INR 2,120/MT. Similarly, base and bid prices for fines (Fe 60.5) were in the range of INR 968-985/MT.

Private miners: Base and bid prices for lumps (Fe 60.3) were in the range of INR 1,967-1,970/MT. Base and bid prices for fines (Fe 60.3) were in the range of INR 957-988/MT.
Note: Prices mentioned above are basic excluding 15% royalty and 12% forest development tax.

Supplier-wise Allotted Quantity in Oct’15  

Quantity in MT
Source: Karnataka DMG

JSW Steel, procured 1.44 MnT iron ore (516,000 MT lumps and 964,000 MT fines) from Karnataka’s e-auctions conducted in the month of Oct’15. The company procured 828,000 MT iron from NMDC ( 396,000 MT from Kumarswamy & 432,000 MT from Donimalai mines) and 652,000 MT from private miners in Oct’15.

Bidder-wise Allotted Quantity in Oct’15  

Quantity in MT
Source: Karnataka DMG
Note: Grade & prices mentioned above are weighted average