India: Karnataka Iron Ore E-auction Sales Up by 7% in Jun'19
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Karnataka has registered an increase of 7% in monthly e-auction sales volume in Jun'19. Total iron ore allotted quantity in Jun'19 were recorded at 2.47 MnT in Jun'19 compared to 2.3 MnT in May'19.
On yearly basis, Karnataka e-auction sales moved up by 25% in Jun'19 as compared to 1.97 MnT in Jun'18.
JSW Steel's iron ore sourcing from Karnataka e-auctions increased sharply by 50% in Jun'19-: JSW Steel's iron ore purchases from Karnataka e-auctions increased sharply by 50% to 1.63 MnT in Jun'19 compared to 1.08 MnT in May'19. Out of 1.63 MnT iron ore sourced by JSW, NMDC supplied 0.75 MnT up by 15% against 0.65 MnT last month and thus contributed around 46% of total JSW sourcing. Company's iron ore sourcing from private mines has doubled to 0.88 MnT in Jun'19 as against 0.43 MnT in May'19.
Vedanta remained second-largest iron ore supplier to JSW Steel at 0.56 MnT in Jun'19, followed by B. Rudra Gouda at 0.09 MnT.
NMDC turned out to be the largest iron ore supplier from Karnataka e-auctions in Jun'19-: NMDC sold 0.86 MnT iron ore via Karnataka e-auctions in Jun'19, increase by 15% M-o-M against 0.75 MnT last month. Out of the total quantity sold by NMDC via e-auction, around 87% of material purchased by JSW steel and rest 13% by others.
Karnataka High Court has announced its final judgment yesterday on the pending Donimalai case of lease renewal. The judgment is in favor of NMDC thus need not pay a premium for mining lease renewal at its Donimalai mines. Previously iron ore operations were on hold at NMDC's Donimalai mine, which had renewed lease on 3rd Nov'18 for the next 20 years.
Vedanta mines second-largest iron ore supplier at 0.59 MnT followed by Vyasankere Iron Ore Mines at 0.23 MnT.
Buyer-wise allotted quantity of Jun'19
| Company | Fines | Lumps | Grand Total |
| JSW Steel Ltd | 1,340,000 | 292,000 | 1,632,000 |
| MSPL Limited | 128,000 | - | 128,000 |
| BMM Ispat Limited | 124,000 | - | 124,000 |
| Minera Steel and Power Private Limited | 40,000 | - | 40,000 |
| Kirloskar Ferrous Industries Limited | 20,000 | 16,000 | 36,000 |
| Others | 200,000 | 312,000 | 512,000 |
| Grand Total | 1,852,000 | 620,000 | 2,472,000 |
Qty in MT
Source: GOK, DMG, SteelMint Research
iron ore e-auctions-:
Major highlights of Jun'19 Karnataka iron ore e-auctions-:
1. Electrotherm India Ltd - a Gujarat based company procured 4,000 MT iron ore lumps (Fe 64%) at INR 3,910/MT.
2. Vedanta procured 28,000 MT iron ore lumps (Fe 61%-66%). They procured 16,000 MT ore from P. Balasubba Setty & Son and 4,000 MT lumps each from NMDC Kumarswamy Mines, Iyli Gurunath Iron Ore Mine, and Ramanadurga Iron Ore Mine. They have not procured anything this time for its own mines in Karnataka.
3. Jindal SAW a western India based pellet maker had procured 20,000 Lumps for Fe 64 and 64.5% grade via e-auction in Karnataka from P. Balasubba Setty & Son and G.G Brothers.
