Karnataka iron ore e-auction prices have been declined since Apr’15. Alongside, NMDC’s lump (Fe 62%) prices have fallen by 13% and fines (Fe 60%) by 44% in 1st five months of FY16. In-line, private miners have also reduced iron ore lump (Fe 62%) prices by 14% and fines (Fe 60%) by 38% in the same time frame.
Karnataka’s iron ore price trend since Apr’12
Bid prices for iron ore fines (Fe 60% weighted average) offered in Karnataka iron ore e-auctions had been consistently fallen upto 56% during past 3 years. In similar lines, bid prices for lump (Fe 63%) has fallen by 40% since Apr’12.
Karnataka iron ore e-auctions scenario in Aug’15
NMDC and private miners both offered their material in Karnataka iron ore e-auctions conducted in the month of Aug’15. Total 2.06 MnT iron ore was allotted in this auction against 2.6 MnT in the month of July’15. Private miners sold 1.3 MnT iron ore out of total allotted quantity i.e. 2.06 MnT. NMDC’s Donimalai sold 340,000 MT iron ore and Kumarswamy sold 373,000 MT.
Last month, Indian steelmakers preferred to buy material offered by private miners as compared to NMDC. Continuing the same prices offered in July, NMDC rolled over prices for all grades for August deliveries also. On the other hand, private miners offered the material somewhat cheaper than NMDC.
Prices
NMDC: Bids received were flat for NMDC’s lump. Base and bid prices for lump (Fe 62) offered by NMDC stood at INR 2,432/MT. Similarly, Base and bid prices for fines (Fe 60.4) were in the range of around INR 1,156-1,154/MT.
Private Miners: Base and bid prices for lump (Fe 63.6) were in the range of INR 2,400 -2,415/MT. Base and bid prices for fines (Fe 60.1) were in the range of INR 1,080-11,50/MT.
Note: Prices mentioned above are basic excluding 15% royalty and 12% Forest development tax
Supplier-wise Allotted Quantity in Aug’15
| Supplier | Fines | Lumps | Grand Total |
| NMDC | 648,000 | 65,000 | 713,000 |
| Mysore Minerals | 412,000 | – | 412,000 |
| Sesa Sterlite | 204,000 | 36,000 | 240,000 |
| Others | 552,000 | 148,000 | 700,000 |
| Grand Total | 1,816,000 | 249,000 | 2,065,000 |
Qty in MT
Source: Karnataka DMG
JSW Steel- Largest Iron ore Buyer in Karnataka e-auctions
JSW Steel procured 1.32 MnT iron ore last month, out of which 1.2 MnT was fines and 0.76 MnT was lump. The company procured lesser quantity in Aug’15 than July’15 due to sufficient availability of the material from previous month’s e-auctions.
Bidder-wise Allotted Quantity in Aug’15
| Company | Fines | Lumps | Grand Total |
| JSW Steel | 1,240,000 | 76,000 | 1,316,000 |
| BMM Ispat | 268,000 | – | 268,000 |
| Janki Corp | 80,000 | – | 80,000 |
| Others | 228,000 | 173,000 | 401,000 |
| Grand Total | 1,816,000 | 249,000 | 2,065,000 |
Qty in MT
Source: Karnataka DMG
Note: Grade & prices mentioned above are weighted average.
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