Karnataka, the 3rd largest iron ore producing state of India sold a 4% less quantity in FY-17 via e-auctions compared to the quantity of 28.7 MnT last fiscal.
Nearly 30 participants supplied the iron ore in FY-17 through Karnataka e-auctions including 2 public sector mines NMDC and Mysore Minerals.
Salient features of Karnataka iron ore e-auctions in FY17 Vs FY16.
Karnataka iron ore auctions sold around 27.61 MnT ore in FY17. NMDC sold 12.6 MnT iron ore, while private miners sold 15.01 MnT ore in FY17.
Weighted Average Grades and Prices for Type of Materials in FY17
1. Lumps (Fe 62%) were offered at bid price of INR 2,084.5/MT
2. Fines (Fe 60.7%) were offered at bid price of INR 1,756.4/MT
3. ROM (Fe 54.1%) were offered at bid price of INR 1,238/MT
Major Buyers in FY17
| Buyer | Fines | Lumps | Low Grade Fines | Sub Grade Fines | ROM | Sub Grade ROM | Grand Total |
| JSW Steel | 13.41 | 5.78 | – | – | 0.1 | – | 19.29 |
| BMM Ispat | 1.25 | 0 | – | – | 0 | – | 1.25 |
| MSPL | 0.53 | – | – | – | – | – | 0.53 |
| Minera Steel And Power | 0.49 | 0 | – | – | – | – | 0.49 |
| Gerdau Steel India | 0.21 | 0.26 | – | – | – | – | 0.47 |
| Others | 1.52 | 3.71 | 0.04 | 0.01 | 0.08 | 0.2 | 5.57 |
| Grand Total | 17.42 | 9.76 | 0.04 | 0.01 | 0.18 | 0.2 | 27.61 |
Quantity in MnT
Source: SteelMint, Karnataka DMG
Highlights of 2017
1. JSW Steel’s iron ore purchases from Karnataka stood at 19.29 MnT in FY’17-JSW Steel’s iron ore purchases from Karnataka e-auctions stood at 19.29 MnT in FY’17, 3% up Y-o-Y. Which was 18.68 MnT last fiscal.
2. BMM Ispat’s iron ore purchases from Karnataka stood at 1.25 MnT in FY’17-JSW Steel’s iron ore purchases from Karnataka e-auctions stood at 1.25 MnT in FY’17, down 45% Y-o-Y. Which was 2.29 MnT last fiscal.
3. Gujarat based Electrotherm India iron ore purchase stood at 0.07 MnT in FY’17- Electrotherm India have sourced- 68,000 MT iron ore lumps and fines in FY17 up 325% against 16000 MT in FY’16.
4. NMDC Pellet Plant Sourcing- NMDC have sourced 52000 MT material for its pellet plant from Donimalai Mines in FY17 up 18 against 44000 MT last fiscal.
5. Importers Turned to Domestic Market – Jeevaka Industries and Akshara Industries have turned to domestic market for iron ore sourcing citing the rising global iron ore prices and purchased 93000 MT and 4000 MnT material respectively in FY17.
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