Last month witnessed comparatively lesser number of iron ore e-auctions following which monthly iron ore sales dropped by 27% M-o-M to 1.92 MnT in Oct’16.
In Oct’16, 1.92 MnT iron ore was sold in Karnataka e-auctions against 2.64 MnT in Sept’16. Thus, iron ore sales at Karnataka e-auctions fell by 27% M-o-M.
NMDC’s iron ore sales at e-auctions fell marginally by 4% M-o-M and stood at 1.15 MnT in Oct’16. Remaining allotted quantity of 0.77 MnT was offered by private mines (primarily Vyasankere mines, Veerbhadra Sangappa and SMIORE).
JSW Steel’s iron ore purchases from Karnataka e-auctions dropped by 25% M-o-M and was recorded at 1.34 MnT in Oct’16. Other major iron ore buyers in Karnataka e-auction last month were – BMM Ispat and Minera Steel & Power.
Major highlights of Oct’16 Karnataka e-auctions :
1. Base prices in e-auctions moved up. NMDC raised base prices by INR 200-360/MT M-o-M. For NMDC Kumaraswamy mines prices were- fines (Fe 60%) – INR 1,678/MT and lump (Fe 63.8%) – INR 1,974/MT. And base prices for NMDC Donimalai were as follows – lump (Fe 62.2) – INR 2,286/MT and fines (Fe 60.2%) – INR 1,899/MT and low grade fines (Fe 58%) – INR 1,679/MT.
2. Sponge grade lump continued to remain preference for southern India based sponge units with some lots receiving quite higher bids than base price. Base price of sponge grade lump (10-20 mm, Fe 62.1% of NMDC Kumaraswamy mines) moved up by INR 300/MT M-o-M to INR 1,823/MT (basic). Bids received were in the range of INR 1,853-2,313/MT.
3. Private miners also raised base prices by INR 300-400/MT. Fines (Fe 65%) was offered by Vyasankere mines at INR 2,345/MT and for lump (Fe 65%), it is INR 2,530/MT.
4. Andhra Pradesh based steel maker Jeevaka Industries who has switched to domestic iron ore sourcing couple of month’s back procured 5,000 MT lump (Fe 59.5-64.5 offered by SMIORE) at bid price of INR 2,420-2,490/MT.
5. Iron ore sourcing of other steel makers were as follows – SAIL (VISL) – 16,000 MT lump, Vedanta – 8,000 MT lump and Electrotherm India – 12,000 MT lump.
6. NMDC procured 12,000 MT fines from its Donimalai mines for its pellet plant.
Buyer-wise allotted quantity in Oct’16 e-auctions –
| Company | Fines | Low Grade Fines | Lump | Total |
| JSW Steel | 770,000 | – | 571,500 | 1,341,500 |
| BMM Ispat | 100,000 | – | – | 100,000 |
| Minera Steel And Power | 56,000 | – | – | 56,000 |
| Thakur Industries | 35,000 | – | 12,000 | 47,000 |
| Kalyani Steels | 8,000 | – | 32,000 | 40,000 |
| Others | 120,000 | 4,000 | 209,000 | 333,000 |
| Total | 1,089,000 | 4,000 | 824,500 | 1,917,500 |
Qty in MT
Source: Karnataka DMG
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