India: Karnataka Iron Ore E- Auction Sales Up by 20% in Jan'19
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Karnataka has registered an increase of 20% M-o-M iron ore sales volume in Jan'19 e-auction. Total iron ore allotted quantity stood at 2.49 MnT in Jan'19 compared to 2.07 MnT in Dec'18.
On yearly basis, Karnataka e-auction sales have decreased by 21% in Jan'19 as compared to 2.06 MnT in Jan'18.
NMDC turns out to be the largest iron ore supplier to JSW in Jan'19
JSW Steel's iron ore purchases from Karnataka e-auctions increased by 25% to 1.45 MnT in Jan'19 compared to 1.16 MnT in Dec'18. Out of 1.45 MnT iron ore sourced by JSW, NMDC supplied 0.9 MnT which was more three-times from last and thus contributed around 62% of total JSW sourcing. JSW Steel's iron ore sourcing from private mines decreased by 36% to 0.55 MnT in Jan'19 as against 0.86 MnT in Dec'18.
Vedanta turns out to be the second largest iron ore supplier to JSW Steel in Jan'19 and supplied 0.38 MnT iron ore in Jan'19 as compared to 0.67 MnT in Dec'18.
NMDC increased iron ore sales from Kumaraswamy mines
NMDC's iron ore sales increased by almost three-times M-o-M to 1.05 MnT in Jan'19 compared to 0.39 MnT in Dec'18. NMDC's announcement of temporarily suspending operations at Donimalai in Karnataka does not seem set for a quick resolution with the Centre intervening to broker peace between the miner and the Karnataka government. As per the senior state-level officials, NMDC has approached the Karnataka High Court for an urgent hearing on NMDC Donimalai lease renewal. There had been a series of hearings adjourned in the court on 10 Jan, 23 Jan & then on 28 Jan'19.
As per the sources, High Court has scheduled its next hearing for the matter on Feb 11th, 2019,
Buyer-wise allotted quantity of Jan'19 iron ore e-Auctions
Company | Fines | Lumps | Grand Total |
JSW Steel Ltd | 1,132,000 | 320,000 | 1,452,000 |
BMM Ispat Limited | 224,000 | - | 224,000 |
MSPL Limited | 160,000 | - | 160,000 |
Thakur Industries | 48,000 | 24,000 | 72,000 |
Kirloskar Ferrous Industries Limited | 36,000 | 30,000 | 66,000 |
Gerdau Steel India Private Limited | 24,000 | 20,000 | 44,000 |
Others | 89,156 | 385,000 | 474,156 |
Grand Total | 1,713,156 | 779,000 | 2,492,156 |
Qty in MT
Source: GOK, DMG, SteelMint Research
Major Highlights of Jan'19 Karnataka iron ore e-auctions
1. Vedanta procured 12,000 MT iron ore Fe 63% lumps at INR 3,700/MT in Jan'19 for its pig iron plant in Goa.
2. Electrotherm India Ltd a Gujarat based company procured 16,000 MT iron ore lumps in Jan'19.
3. XIndia Steels purchased 8,000 MT iron ore fines (Fe 64 & 62%) at INR 2700-2825/MT.