India: Karnataka's iron ore e-auction sales volumes drop by 21% m-o-m in Jan'24

• Players prefer direct sales over auctions
  
  
• Exhausting EC limits for the FY'24
  
  

Iron ore e-auction sales volumes in Karnataka decreased by 21% m-o-m to 0.96 million tonnes (mnt) in January 2024 from 1.22 mnt in December 2023, as per BigMint data. Out of the total volume of iron ore sold via auctions, 564,000 tonnes (t) fines, and 393,000 t lumps were sold during the month.

Miners are significantly opting for direct sales instead of participating in auctions. However, the decline in sales is linked to the depletion of Environment clearance (EC) limits from Karnataka miners, leading to a shortage of raw materials, which is also evident as the financial year end approaches.

Sales rise by 4% in NMDC's auction - NMDC, India's top iron ore miner, auctioned 740,000 t from Karnataka in January 2024, higher by 4% m-o-m as against 713,000 t in December 2023. Out of the total volume of iron ore, 264,000 t of fines, and 476,000 t of lumps were sold during the month.

Other miners' iron ore sales via auction outcomes:

KSMCL emerged as the second-leading miner by selling 104,000 t of iron ore via auctions in Jan'24. However, sales recorded a marginal drop of 76% against 435,000 t in December, 2023.

SMIORE sold 65,000 t of iron ore in January 2024, a rise of 23% m-o-m against 53,000 t in December 2023.

SKMEPL recorded 44,000 t of iron ore sales in January 2024 against 4,000 t in December 2023.

U Krishna Prasad sold 4,000 t of iron ore in January 2024 , whereas, no auction was held in December 2023.

Iron ore prices remain stable m-o-m: The monthly weighted average prices of iron ore lumps and fines remained stable m-o-m. Weighted average prices of Fe 60% fines stand at INR 4,150/t and that of Fe 63% lump prices at INR 5,150/t (excluding taxes).