1.93 MnT iron ore was sold via Aug’16 Karnataka e-auctions against 2.05 MnT in Jul’16. Two southern Indian iron ore importers turned to domestic market and participated in Aug’16 e-auctions owing to costly imports.
Iron ore sales via Karnataka e-auctions dropped by 6% M-o-M to 1.93 MnT in Aug’16. NMDC’s iron ore sales via e-auctions increased by 18% M-o-M and stood at 1.03 MnT in Aug’16. 0.88 MnT was sold by private miners and 0.017 MnT iron ore, by Mysore Minerals via Aug’16 e-auctions.
JSW Steel’s iron ore purchases from Karnataka fall by 14% M-o-M
Iron ore sourcing of JSW Steel from Karnataka e-auctions fell by 14% M-o-M from 1.46 MnT in Jul’16 to 1.26 MnT in Aug’16. Other major buyers were BMM Ispat and MSPL.
Buyer-wise allotted quantity in Aug’16 e-auctions:
|
Company |
Fines | Lump |
Total |
| JSW Steel | 848,000 | 413,000 | 1,261,000 |
| BMM Ispat | 92,000 | – | 92,000 |
| MSPL | 88,000 | – | 88,000 |
| Gerdau Steel India | 28,000 | 28,000 | 56,000 |
| Kirloskar Ferrous Industries | 12,000 | 20,000 | 32,000 |
| Others | 108,000 | 288,000 | 396,000 |
| Total | 1,176,000 | 749,000 | 1,925,000 |
Qty in MT
Source: Karnataka DMG
Major highlights of Aug’16 Karnataka e-auctions:
- Few southern India based iron ore importers preferred sourcing from Karnataka e-auctions than going for imports over costly import offers. Jeevaka Industries started sourcing iron ore from Karnataka e-auctions last month and procured 14,000 MT lump (Fe 61.7-64.5%) from private miners. Akshara Industries resumed purchases from Karnataka e-auctions and sourced 4,000 MT lump (Fe 61%) from NMDC Kumaraswamy mines.
- Gujarat based Electrotherm India procured 8,000 MT lump (Fe 65%) and 4,000 MT fines (Fe 64%).
- Karnataka based Star Minerals participated in Karnataka e-auctions for the first time and sourced 8,000 MT iron ore in Aug’16.
- NMDC’s base prices remained stable on monthly premises. Base prices for its Donimalai mines were as follows: lump (Fe 62.2%) – INR 1,927/MT and fines (Fe 60.2%) – INR 1,650/MT. For Kumaraswamy mines, base prices were as follows: fines (Fe 62.9%) was at INR 1,682/MT and for lump (Fe 63.6%), it was at INR 1,847/MT. Majority of the lots fetched flat bids however, for some lots, bid prices went higher by upto INR 380/MT than base prices.
- Private miners base price were as follows: Base prices, for fines (Fe 65%) offered by Vyasankere mines remained at INR 2,025/MT (basic) and for lump (Fe 65%), are seen hovering at INR 2,125/MT. Base prices of Sesa Sterlite’s lump (Fe 60.5%) stood at INR 1,366/MT and fines (Fe 59.3%) was at INR 975/MT (basic). Majority of lots offered by private miners received flat bids. However, for some lots bid prices jumped by upto INR 330/MT.
- Mysore Minerals’ base prices rose in Aug’16. Base prices for lump (Fe 56.1%) prices stood by INR 1,445/MT.
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