Karnataka Iron Ore E-auction Sales Up 14% in May’17

2.32 MnT iron ore sold via May’17 e-auctions, up by 14% M-o-M.

The month of May’17 witnessed an increase in purchases in Karnataka e-auctions.  The quantity of 2.32 MnT iron ore was sold in May’17 against 2.04 MnT in Apr’17, up by 14% M-o-M. May’17 total iron sales quantity was reasonably higher compared to last month.

NMDC sold 1.09 MnT iron ore via e-auctions in May’17- NMDC’s iron ore sales at e-auctions were down by 22% M-o-M and stood at 1.09 MnT in May’17. Out of the total allotted quantity 0.27 MnT was offered by Mysore Minerals and rest 0.96 MnT by private miners.

JSW Steel’s iron ore purchases from Karnataka stood at 1.74 MnT in May’17-JSW Steel’s iron ore purchases from Karnataka e-auctions stood at 1.74 MnT in May’17, up 31% M-o-M. Other major iron ore buyers in Karnataka e-auction last month were BMM Ispat, Mukand Ltd Srikalahasthi Pipes, Kirloskar Ferrous Industries.

Buyer-wise allotted quantity in May’17 e-auctions

Qty in MT
Source: Karnataka DMG

Major highlights of May’17 Karnataka e-auctions:

1. Iron ore base prices of NMDC Donimalai mines were increased for the month.  For NMDC Donimalai mines prices were- fines (Fe 60.02%) – INR 2,246-2,266/MT and lump (Fe 63%) – INR 2,559-2,600/MT. For NMDC Kumaraswamy mines prices were- fines (Fe 61%) – INR 2,141/MT and lump (Fe 63%) – INR 2,559-2599/MT.

2. Price scenario of sponge grade lump in May’17 Karnataka e-auctions – Sponge grade lump (Fe 63.6%, 10-20 mm ) offered by NMDC Kumaraswamy mines was base priced at INR 2,628/MT. The lot was sold at INR 2,628/MT.

3. Base prices of iron ore offered by a private miner, Vyasankere mines,  lump (Fe 65%) were unchanged M-o-M at INR 2,850/MT (basic).

4. Andhra Pradesh based steel maker Jeevaka Industries have sourced 6000 MT iron ore  form SMIORE and Gujarat based Electrotherm India have sourced two lots of 4000 MT iron ore from P Balasubba Setty & Son and Vyasankere Iron Ore Mines last month one from each supplier.