India: Karnataka Iron Ore E-auction Sales Volume Stable in Feb'20
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Karnataka iron ore e-auction sales volume increased marginally on monthly basis. Karnataka e-auction sales summed up to 2.27 MnT in Feb'20 as compared to 2.25 MnT in Jan'20. According to close sources report to SteelMint, Karnataka iron ore miners have sold out most of their material hence exhausted their EC limit for the current financial year.
JSW Steel's iron ore sourcing from Karnataka e-auctions fall by 3% in Feb'20: JSW Steel's iron ore purchases from Karnataka e-auctions decreased by 3% to 1.22 MnT in Feb'20 compared to 1.26 MnT in Jan'20. Out of 1.22 MnT iron ore sourced by JSW in Feb'20, NMDC supplied 0.44 MnT up 32% as against 0.33 MnT in Jan'20 and thus contributed around 36% of total JSW sourcing.
Vedanta supplied 0.40 MnT to JSW down 25% as against 0.54 MnT a month before in Jan'20 and thus contributed around 33% of total JSW sourcing.
NMDC turned out to be the largest iron ore supplier in Feb'20-: NMDC was the largest iron ore supplier via Karnataka e-auction and sold 0.59 MnT iron ore via e-auctions in Feb'20, higher by 34% M-o-M against 0.44 MnT a month before. Out of the total quantity sold by NMDC via e-auction, around 74% of the material purchased by JSW Steel and rest 26% by others.
Other major suppliers for the month of Feb'20 was Vedanta at 0.57 MnT decreased by 7% against 0.61 MnT in Jan'20, Vyasankere Iron Ore Mines stood at 0.22 MnT.
Buyer-wise allotted quantity in Feb'20-:
| Buyer | Fines | Lumps | ROM | Grand Total |
| JSW Steel Ltd | 917,500 | 305500 | - | 1,223,000 |
| MSPL Limited | 116,000 | - | 69,740 | 185,740 |
| BMM Ispat Limited | 108,000 | - | - | 108,000 |
| Rai Bahadur Seth Shreera M Narasing Das Private Limited | 46,000 | 17,000 | 32,000 | 95,000 |
| Arjas Steel Private Limited | 32,000 | 44,000 | - | 76,000 |
| Others | 228,386 | 328,065 | 23,575 | 580,026 |
| Grand Total | 1,447,886 | 694,565 | 125,315 | 2,267,766 |
Qty in MT
Source: GOK, DMG, SteelMint Research
Major highlights of Feb'20 Karnataka iron ore e-auctions-:
1. Electrotherm India Ltd - a Gujarat based company procured 12,000 MT iron ore lumps Fe 63.67% and 65% at INR 4,560 and 3,800/MT respectively. The prices in Karnataka were increased amid tight availability. As few miners have heard to have finished EC limit for this fiscal leading to reduced material availability in the market.
2. The prices of iron ore lumps (Fe 63.67%) offered from P. Balasubba Setty & Son fetched bids higher by INR 960/MT at INR 4,560/MT over the base price of INR 3,600/MT in e-auction held on 14th Feb'2020. Vyasankere mines fetched bids for iron ore fines (Fe 65%) of around INR 1200/MT to INR 4,140-4,160/MT over the base price of INR 2,950/MT in e-auction for the same date.
3. Vedanta Ltd procured around 15,000 MT iron ore lumps (Fe 61.3-65%) from e-auction for its sponge plant in Goa from Vyasankere Iron Ore Mines (8,000 MT), P. Balasubba Setty & Son (4,000 MT) and SMIORE mines (3,000 MT).
