India: Karnataka iron ore e-auction sales rebound in Oct'23

Iron ore e-auction sales volumes in Karnataka rebounded by 83% m-o-m to 2.1 million tonnes (mnt) in October 2023 from 1.15 mnt in September, as per SteelMint data. Out of the total material sold in October, 534,202 t were lump ore and 1.6 mnt fines. Post monsoon, miners put decent quantities in auctions and resolution of logistical issues in October led to increased sales in Karnataka.

As per SteelMint data, pellet sales in Karnataka increased sharply, almost double against September, which indicates improvement in demand for iron ore in the state on a m-o-m basis.

Sales up 30% in NMDC auction - NMDC, India's top iron ore miner, auctioned 1.13 mnt from Karnataka in October, up 29% m-o-m as against 872,000 t in September. Total volume of iron ore fines sold stood at 796,000 t, while 330,000 t of lump ore was sold during the month.

Other miners iron ore auction material also dropped significantly:

KSMCL emerged as the second leading miner by selling 879,702 t of iron ore via auctions in October. However, sales rose sharply compared to 144,000 t in September.

SKMEPL recorded 48,000 t of iron ore sales in October against 8,000 t in September.

Vedanta iron ore volumes decreased by 57.14 % m-o-m to 24,000 t in October compared to 56,000 t in September.

SMIORE sold 20,000 t of iron ore in October, a drop of 57.4 % m-o-m against 47,000 t in September.

Miner-wise auctions:

Iron ore prices increase m-o-m: The monthly weighted average price of iron ore lumps and fines increased m-o-m. Prices of Fe 60% fines moved up by INR 550/t m-o-m to INR 3,050/t and Fe 63% lump prices rose by INR 850/t m-o-m to INR 4,500/t ex-mines, excluding taxes.