India: Karnataka iron ore e-auctions sales rebound in Mar'23

Karnataka iron ore e-auctions' sales rebounded by 96% m-o-m to 2.51 million tonnes (mnt) in March 2023 from 1.28 mnt in February, as per SteelMint data. Out of the total material sold, there were 1.58 mnt of fines and 0.93 mnt of lumps.

Owing to a fall in iron ore sales volumes in auctions in the last couple of months, March saw active bookings. Owing to hike in sales volume by NMDC and SMOIRE during March 2023, sales increased significantly from Karnataka.

Auction highlights

NMDC's sales increase - NMDC, India's top iron ore miner, auctioned 1,874,000 t of material from Karnataka. Sales surged 163% m-o-m from 712,000 t in February. Out of total 12,96,000 t, 5,78,000 t of iron ore fines and lump ore were sold during the month.

SMIORE became the second leading miner. The company sold 2,21,000 t in March against 85,000 t in February. Followed by JSW auction which sold 1,80,000 t of iron ore from its mines in Karnataka last month in March, 2023.

KSMCL's iron ore volume decreased by 64% m-o-m to 1,14,300 t in March compared to 3,19,000, a month ago. Out of the total material, the company has sold 58,300 t of fines and 56,000 t of lumps.

Other leading miners like, Vedanta reported a fall of 37% m-o-m to 76,000 t in March against 1,04,000 t in February. Vedanta's entire quantites were iron ore lumps.

Karnataka auction miners

Prices down by INR 200-300/t - The monthly weighted average price of iron ore fines down by around INR 200-300/t in both fines and lumps m-o-m in March. Price of fines Fe 60% stood at INR 2,900/t and that of lumps Fe 63% was recorded at INR 3,450/t ex-mines, excluding taxes.

India's total iron ore production is estimated at 255 mnt in FY23, up by 2 mnt compared to 253 mnt in the preceding fiscal. Karnataka was the third largest iron ore-producing state with 38 mnt.