Karnataka Iron Ore Sales Up by 42% M-o-M in Jun-16

  1. 2.63 MnT iron ore was sold via Jun’16 Karnataka e-auctions
  2. NMDC sold 1.02 MnT iron ore while rest was sold by private miners 
  3. JSW Steel’s iron ore purchases from Karnataka up by 23% M-o-M

The month of Jun’16 noticed rigorous number of Karnataka e-auctions. Monthly iron ore sales volume moved up by 42% M-o-M in Jun’16. 2.63 MnT iron ore was allotted in Jun’16 against 1.85 MnT in May’16.

NMDC sold 1.02 MnT iron ore in Jun’16 (up by 20% M-o-M) and private miners sold 1.61 MnT iron ore (up by 61% M-o-M).

Buyer-wise allotted quantity in Jun’16 Karnataka e-auctions –

Company

Fines Low Grade Fines Lumps ROM Sub Grade ROM

Total

JSW Steel  1,032,000  –  554,000   36,000     1,622,000 
Thakur Industries  20,000  –  4,000   36,000   57,000   117,000 
BMM Ispat  104,000  – –  4,000  –  108,000 
Gerdau Steel India  40,000  –  64,000  – –  104,000 
MSPL   68,000  – – – –  68,000 
Others  192,000   36,000   363,000   21,500  –  612,500 
Total  1,456,000   36,000   985,000   97,500   57,000   2,631,500 

Qty in MT
Source: Karnataka DMG

Highlights of Jun’16 Karnataka iron ore e-auctions –

  1. JSW Steel procured 62% of the total allotted quantity and continues to remain the largest buyer. Its purchase from Karnataka e-auctions has gone up by 23% M-o-M from 1.32 MnT in May’16 to 1.62 MnT in Jun’16
  2. NMDC procured 36,000 MT low grade fines (Fe 58.5%) in Jun’16. It seems that it will soon start commercial pellet production at its 1.2 MnT pa pellet plant in Karnataka
  3. SAIL (VISL) procured 24,000 MT lump via Jun’16 e-auctions
  4. NMDC’s base prices remained unchanged on monthly premises. Base prices for its Donimalai mines were as follows: lump (Fe 62.5%) – INR 1,953/MT and fines (Fe 60.2%) – INR 1,650/MT. For Kumaraswamy mines, base prices were as follows: fines (Fe 57.1%) was at INR 1,185/MT and for lump (Fe 63.5%) it was at INR 1,839/MT. Majority of lots were sold at base price
  5. Mysore Minerals’ base prices moved up by about INR 80/MT, M-o-M. Base prices for fines (Fe 61.2%) was at INR 1,644/MT and for lump (Fe 56.4%) prices stood INR 1,336/MT
  6. Private miners base price were as follows: Base prices for fines (Fe 65%) offered by Vyasankere mines remained at INR 2,025-2,125/MT (basic) and for lump (Fe 65%) are seen hovering in the range of INR 2,125-2,225/MT. Base prices of Sesa Sterlite’s lump (Fe 60%) stood at INR 1,331/MT (basic)

    Karnataka


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