India: Karnataka's iron ore e-auction sales rise by 25% m-o-m in Aug'24
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Iron ore e-auction sales volumes in Karnataka rose by 25% m-o-m to 1 million tonnes (mnt) in August 2024 against 0.8 mnt in July 2024, as per BigMint's data. Of the total volumes sold in August, fines accounted for 644,000 tonnes (t) and lumps, 356,400 t.
Auction sales volumes showed a recovery in August, although some iron ore auction lots remained unsold. BigMint notes that adverse weather conditions in the previous month impacted iron ore production. With limited availability of lumps, sponge makers exhibited a preference for pellets, which increased the demand for fines. However, the decline in the export market for low-grade fines resulted in more material being diverted to the domestic market.
NMDC records sales hike: National Mineral Development Corporation (NMDC), India's largest iron ore miner, sold 816,000 t of iron ore from Karnataka via auctions in August 2024. This volume, comprising 544,000 t of fines and 272,000 t of lumps, marks a 19% m-o-m increase as compared with 688,000 t in July 2024.
Outcomes of other miners' iron ore auction sales
Karnataka State Minerals Corporation Limited (KSMCL) emerged as the second-leading miner by selling 108,000 t of iron ore in August 2024. The volume sold is three times higher than the previous month's sales volume of around 24,000 t.
Vedanta sold 36,000 t of iron ore in August 2024, stable as compared to the previous month.
Sandur Manganese and Iron Ore (SMIORE) recorded 25,000 t of iron ore sales in August 2024, a 42% drop m-o-m from the 43,000 t of iron ore sold in July 2024.
R Praveen Chandra sold 15,400 t of lumps in August 2024.
Iron ore prices increase m-o-m: The monthly weighted average prices of iron ore fines and Fe 63% lumps prices increased m-o-m. Weighted average prices of Fe 60% fines rose by INR 200/t m-o-m to INR 3,400/t and of Fe 63% lumps went up by INR 100/t m-o-m to INR 4,400/t. Prices are exclusive of taxes.
Outlook
Karnataka's iron ore auctions are expected to maintain their current pace on the back of the receding monsoon in September. However, weak demand for semi-finished and finished steel has made the market volatile.
