Karnataka Iron Ore E-auction Sales Up 29% in Oct’17

Karnataka has registered increase of 29% M-o-M in its monthly iron ore sales via e-auction. In Oct’17, total iron ore allotted quantity amounted to 2.02 MnT compared to 1.57 MnT in Sept’17.

NMDC iron ore sales fell down by 5% in Oct’17– NMDC’s iron ore sales at e-auctions were down by 5% to M-o-M to 0.79 MnT in Oct’17 compared to 0.83 MnT in Sept’17. Other suppliers in Oct’17 were – Mysore Minerals 0.39 MnT and private miners 0.84 MnT.

NMDC Donimalai mines increased it sales via auction by 13% to 0.52 MnT in Oct’17 compared to 0.46 MnT in Sept’17 while sales from NMDC Kumarswamy down by 28% to 0.27 MnT in Oct’17 compared to 0.37 MnT in Sept’17.

JSW Steel Sourcing from Karnataka up 51% -JSW Steel’s iron ore purchases from Karnataka e-auctions stood at 1.46 MnT in Oct’17 up 51% M-o-M compared to 0.97 MnT in Sept’17. Other major iron ore buyers of Karnataka e-auction in October were BMM Ispat (0.08 MnT), Gerdau Steel India (0.06 MnT), Minera Steel And Power (0.05 MnT), and Srikalah Asthi Pipes ltd (0.04 MnT).

Buyer-wise allotted quantity in Oct’17 E-auctions

Qty in MT
Source: Karnataka DMG

Major highlights of Oct’17 Karnataka e-auctions:

1. NMDC had reduced base prices by INR 100/MT for Oct’17 e-auctions. Iron ore base prices of NMDC Donimalai mines were unchanged for the month. For NMDC Donimalai mines booking prices were- fines (Fe 60.2%) – INR 2,139-2,149 and lump (Fe 62%) – INR 2,439/MT. For NMDC Kumaraswamy mines prices were- fines (Fe 62.1%) – INR 2,360-2,430/MT and lump (Fe 63%) – INR 2,595-2,785/MT.

2. Gujarat based steel maker – Electrotherm purchased 4,000 MT Fe 65% grade lumps at INR 3,080/MT.

3. Jeevaka Industries purchased 3,000 MT lump (Fe 59%) at INR 2,600/MT.

4. Owing to high grade, Vedanta’s iron ore auctioned fetched increase in bid prices in Oct’17. Lump (Fe 61.5%, 6-20mm) received bid prices at INR 2,518/MT in the e-auction conducted on 27 Oct’17 against last month’s bid price of INR 2,436/MT.