The month of Jan’17 witnessed an aggressive buying in Karnataka e-auctions . The quantity of 2.81 MnT iron ore was sold in Jan’17 against 1.9 MnT in Dec’16, up by 48% M-o-M. Jan’17 total iron sales quantity was high comparing last month.
NMDC sold 1.22 MnT iron ore via e-auctions in Jan’17– NMDC’s iron ore sales at e-auctions increased by 62.67% M-o-M and stood at 1.22 MnT in Jan’17. Out of the total allotted quantity 0.25 MnT was offered by Mysore Minerals and rest 1.34 MnT by private miners.
JSW Steel’s iron ore purchases from Karnataka stood at 1.95 MnT in Jan’17– JSW Steel’s iron ore purchases from Karnataka e-auctions stood at 1.95 MnT in Jan’17, up 49% M-o-M.Other major iron ore buyers in Karnataka e-auction last month were – BMM Ispat, MSPL and Minera Steel and Power. The hike of INR 24 for iron ore Fines (Fe 60%) and INR 117 for Lumps (Fe 63%) have been recorded in Jan’17.
Buyer-wise allotted quantity in Jan’17 e-auctions
| Company |
Fines |
Lumps |
Grand Total |
| JSW Steel |
1,558,000 |
393,000 |
1,951,000 |
| BMM Ispat |
140,000 |
– |
140,000 |
| MSPL |
128,000 |
– |
128,000 |
| Minera Steel And Power |
60,000 |
– |
60,000 |
| Janki Corp |
28,000 |
10,000 |
38,000 |
| Others |
84,000 |
406,000 |
490,000 |
| Grand Total |
1,998,000 |
809,000 |
2,807,000 |
Qty in MT
Source: Karnataka DMG
Major highlights of Jan’17 Karnataka e-auctions:
1. Base prices in NMDC e-auctions moved up marginally in Jan’17. For NMDC Kumaraswamy mines prices were- fines (Fe 59.50%) – INR 1,805/MT and lump (Fe 63.4%) – INR 2,423-2,493/MT. And base prices for NMDC Donimalai were as follows – lump (Fe 62.2) – INR 2,397/MT and fines (Fe 60.2%) were slightly higher at INR 2,083/MT against INR 1,980/MT in Dec’16.
2. Price scenario of sponge grade lump in Jan’17 Karnataka e-auctions -Lump (10-40 mm, Fe 61.2%) offered by SMIORE was base priced at INR 2,250/MT. The lots were sold at around INR 130/MT higher than base price. Sponge grade lump (Fe 62.1%, 10-20 mm) offered by NMDC Kumaraswamy mines was base priced at INR 1,935/MT. The lot was sold at INR 1,945/MT. However other lots containing sponge grade lump of NMDC’s Kumarswamy mines received bids higher up to INR 530-600/MT.
3. Base prices of iron ore offered by a private miner, Vyasankere mines, lump (Fe 65%) increased substantially M-o-M at INR 2,720/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 61.25% offered by S V Srinivasulu) at bid price of INR 2419/MT. The steel producer procured a total of 17,000 MT iron ore from two different private miners in Jan’17.
5. Iron ore sourcing of other steel makers last month were as follows – SAIL (VISL) – 8,000 MT lump, Vedanta – 32,000 MT iron ore (both lump & fines) and Electrotherm India – 4,000 MT lump. 
Leave a Reply