1.9 MnT iron ore sold via Dec’16 e-auctions, down by 39% M-o-M.
The month of Dec’16 witnessed low activity in Karnataka e-auctions. 1.9 MnT iron ore was sold in Dec’16 against 3.09 MnT in Nov’16, down by 39% M-o-M. Dec’16 total iron sales numbers have been almost identical to that of the month of Oct’16 which stood at 1.92 MnT.
NMDC sold 0.75 MnT iron ore via e-auctions in Dec’16- NMDC’s iron ore sales at e-auctions decreased by 47.55% M-o-M and stood at 0.75 MnT in Dec’16. Remaining allotted quantity of 0.35 MnT was offered by Mysore Minerals and rest 0.80 MnT by private miners.
JSW Steel’s iron ore purchases from Karnataka stood at 1.31 MnT in Dec’16-JSW Steel’s iron ore purchases from Karnataka e-auctions stood at 1.31 MnT in Dec’16, down 46% M-o-M. Other major iron ore buyers in Karnataka e-auction last month were – Rai Bahadur Seth Shreeram Narasingdas Private Limited, BMM Ispat and Thakur Industries.
Buyer-wise allotted quantity in Dec’16 Karnataka e-auctions
| Company | Fines | Lump | ROM | Sub Grade Fines | Sub Grade ROM | Total |
| JSW Steel | 887,000 | 364,000 | 60,000 | – | – | 1,311,000 |
| Rai Bahadur Seth Shreeram Narasingdas Private Limited | 8,000 | – | – | – | 104,000 | 112,000 |
| BMM Ispat | 88,000 | – | – | – | – | 88,000 |
| Thakur Industries | 1,135 | 12,324 | 10,320 | – | 40,000 | 63,779 |
| Gerdau Steel India | 24,000 | 24,000 | – | – | – | 48,000 |
| Others | 76,000 | 189,000 | 4,000 | 12,000 | – | 281,000 |
| Total | 1,084,135 | 589,324 | 74,320 | 12,000 | 144,000 | 1,903,779 |
Qty in MT
Source: Karnataka DMG
Major highlights of Dec’16 Karnataka e-auctions:
1. Base prices in NMDC e-auctions moved up marginally in Dec’16. For NMDC Kumaraswamy mines prices were- fines (Fe 59.50%) – INR 1,707/MT and lump (Fe 63.4%) – INR 2,302-2,322/MT. And base prices for NMDC Donimalai were as follows – lump (Fe 62.2) – INR 2,286/MT and fines (Fe 60.2%) were slightly higher at INR 1,980/MT against INR 1,899/MT in Nov’16.
2. NMDC’s sponge grade lump fetches higher bids in Dec’16 e-auctions – Southern India based sponge iron manufacturers continued procuring sponge grade lump in Karnataka e-auctions. Lump (10-20 mm, Fe 61.4%) offered by NMDC Kumaraswamy mines received bids at INR 1,912/MT against base price of INR 1,762/MT (basic)
3. Base prices of iron ore offered by private miners were as follows: fines (Fe 60.3%) offered by SMIORE was at INR 1,850/MT and for lump (Fe 61.8%) it stood at INR 2,180/MT (basic). Vyasankere mines lump (Fe 65%) base prices inched up marginally M-o-M at INR 2,570/MT (basic).
4. Andhra Pradesh based steel maker Jeevaka Industries who has switched to domestic iron ore sourcing few months back procured 4,000 MT lump (Fe 65% offered by P Balasubba Setty & Son) at bid price of INR 3160/MT. The steel producer procured a total of 10,000 MT iron ore from two different private miners in Dec’16.
5. Iron ore sourcing of other steel makers last month were as follows – SAIL (VISL) – 8,000 MT lump, Vedanta – 16,000 MT iron ore (both lump & fines) and Electrotherm India – 4,000 MT lump.
6. Dec’16 e-auction saw the sale of ROM, Sub Grade Fines and Sub Grade ROM which was not done in previous month.
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