India: Karnataka iron ore e-auction sales up 7% m-o-m in May'21
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Karnataka registered a 7% rise in its monthly e-auction sales volumes in May'21. The total allotted iron ore quantity in May'21 was recorded at 2.94 million tonnes (mn t) compared to 2.76 mn t in Apr'21.
JSW's iron ore sourcing from Karnataka auctions up: JSW Steel, India's major private steel mill and the largest buyer of Karnataka's auctioned iron ore, increased its purchases by 10% in May '21. Last month, JSW Steel purchased around 1.62 mn t of iron ore from the Karnataka e-auctions against 1.47 mn t in Apr'21.
JSW Steel's production increased as its 13 (nine in Karnataka and four in Odisha) captive iron ore mines became operational in FY'21.
Out of the 1.62 mn t iron ore sourced by JSW from the e-auctions in May'21, NMDC supplied 0.65 mn t(up from 0.60 mn t in Apr'21),accounting for around 40% of the total JSW sourcing.
Vedanta remained the second-largest iron ore supplier to JSW Steel at 0.37 mn t against 0.29 mn t in Apr'21.
Sales from NMDC up 10% m-o-m: NMDC sold 1.07 mn t of iron ore via the Karnataka e-auctions in May'21, against 0.97 mn t in the previous month, (including production from the Donimalai mines). NMDC's Donimalai mines sold around 0.6 mn t last month.
Iron ore sales from Vedanta were recorded at 0.42 mn t in May'21, against 0.56 mn t in Apr'21.
Buyer-wise allotted quantity in May'21 iron ore e-auctions
Qty in metric tonnes (t)
Source: GOK, DMG, SteelMint Research
Highlights of May'21 Karnataka iron ore e-auctions:
1. Vedanta procured 96,000 tonnes (t) of iron ore, of which 40,000 t were fines (Fe 57.5-66.2) and 56,000 t were lumps (Fe 59.8%-65%).
2. Western India-based pellet maker Jindal SAW bought 28,000 t of iron ore fines (Fe 63.2) at INR 6,690/t and 20,000t of iron ore lumps (Fe 63.41-65%) at INR 7,830-8,450/t. The entire purchases done by the pellet maker were from private miners.
3. Rashtriya Ispat Nigam Limited, a public limited company, bought around 88,000 t of iron ore lumps Fe 61% from NMDC's Donimalai at INR 6,348-6,618/t. All prices mentioned are basic, taxes extra.
4. Goa's Chowgule procured 12,000t of fines (Fe 67.2%) at INR 6,680/t from P. Balasubba Setty mines.
