Karnataka Iron Ore E-auction Sales Up 42% in Dec'17
...
Karnataka has registered an increase of 42% M-o-M in its monthly iron ore sales via e-auction in Dec'17. In Dec'17, total iron ore allotted quantity stood at to 3.37 MnT compared to 2.38 MnT in Nov'17.
NMDC iron ore sales increased by 10% in Dec'17- NMDC's iron ore sales increased by 10% M-o-M to 1.27 MnT in Dec'17 compared to 1.15 MnT in Nov'17. NMDC Kumarswamy recorded an increase in its sales via auction by 13% to 0.71 MnT in Dec'17 compared to 0.63 MnT in Nov'17 while sales from NMDC Donimalai increased by 8% to 0.55 MnT in Dec'17 compared to 0.51 MnT in Nov'17.
JSW Steel iron ore sourcing from Karnataka up 36% -JSW Steel's iron ore purchases from Karnataka e-auctions stood at 2.36 MnT in Dec'17 significantly up by 36% M-o-M compared to 1.73 MnT in Nov'17. Out of 2.36 MnT, NMDC supplied 1.01 MnT iron ore via e-auction in Nov'17, a rise of 8% as against 0.93 MnT in Nov'17.
Buyer-wise allotted quantity in Dec'17 E-auctions-:
| Company | Fines | Lumps | Total |
| JSW Steel Ltd | 1,820,000 | 540,000 | 2,360,000 |
| BMM Ispat | 152,000 | - | 152,000 |
| MSPL Limited | 132,000 | - | 132,000 |
| Minera Steel & Power Limited | 80,000 | - | 80,000 |
| Thakur industries | 26,000 | 26,000 | 52,000 |
| Others | 140,000 | 457,000 | 597,000 |
| Grand Total | 2,350,000 | 1,023,000 | 3,373,000 |
Qty in MT
Source: Karnataka DMG
Major highlights of Dec'17 Karnataka iron ore e-auctions:
- NMDC had increased base prices up to INR 200-300/MT for Dec'17 e-auctions. For NMDC Kumaraswamy mines base prices were- fines (Fe 63%) - INR 2,800/MT and lump (Fe 64%) - INR 3,110/MT. For Dec'17 base prices for NMDC Donimalai fines (Fe 60.2%) has been increased to INR 2,432/MT and lump (Fe 62.5%) - INR 2,902/MT.
- Gujarat based steel maker - Electrotherm continued its participation in E-auction in Dec'17 and purchased 8,000 MT Fe 65% grade lumps at INR 3,380/MT and 4000 MT Fe 64.5% at INR 3,410/MT from private miners.
- Mysore.Minerals Ltd supplied 0.61 MnT, Out of this 97% of its material was supplied to JSW.
- Vedanta procured 8,000 MT Fe 64% grade lumps from a private miner at the base price of INR 4,660/MT.
- The Supreme Court increased iron ore mining cap in the state of Karnataka from 30 MnT pa to 35 MnT pa. The existing ceiling of 5 MnT fixed for 'A' & 'B' mining leases. For districts, Tumkur and Chitradurga cap has been enhanced by 2 MnT to 7 MnT and for 'District Bellary" the annual production cap for the district has been enhanced by 3 MnT to 28 MnT.
