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India: Karnataka iron ore e-auction sales largely stable in Jan'22

Karnataka iron ore e-auction sales volume was largely stable m-o-m in Jan’22. The total allotted iron ore quantity in the month was 3.09 million tonnes (mnt) co...

Fines/Lumps
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10 Feb 2022, 18:58 IST
India: Karnataka iron ore e-auction sales largely stable in Jan'22

Karnataka iron ore e-auction sales volume was largely stable m-o-m in Jan'22. The total allotted iron ore quantity in the month was 3.09 million tonnes (mnt) compared with the previous month's 3.1 mnt.

The preference for pellets seems to have lowered which in turn has kept demand for iron ore lumps supported in January. Notably, SteelMint recorded pellet trade volumes of around 86,000 t in Jan'22 as against around 117,000 t in Dec'21.

JSW's iron ore sourcing from Karnataka auctions decreases: Purchases by JSW Steel, the largest buyer at Karnataka's iron ore e-auctions, decreased by 13% in January. The company purchased around 1.57 mnt of iron ore from the Karnataka auctions last month against 1.81 mnt in December.

Out of the total sourced volume, NMDC supplied 0.75 mnt (a significant rise compared to 0.62 mnt in December), accounting for around 48% of JSW Steel's total sourcing.
Vedanta remained the second-largest iron ore supplier to JSW Steel at 0.36 mnt last month, a sharp drop against 0.78 mnt in December.

Buyer-wise allotted quantities in Jan'22 iron ore e-auctions

Qty in tonnes (t)
Source: Karnataka state govt, DMG, SteelMint Research
All prices mentioned are basic, taxes extra

Sales from NMDC rise m-o-m: NMDC sold 1.35 mnt of iron ore via the Karnataka e-auctions in January against 1.04 mnt in the previous month, (including volumes from the Donimalai mines). NMDC's Donimalai mines sold around 0.54 mnt in January. Iron ore sales from the other leading miner Vedanta was recorded at 0.52 mnt in January against 0.81 mnt in December.

Highlights of Jan'22 Karnataka iron ore e-auctions

  • Vedanta procured 88,000 t of iron ore, of which 40,000 t were fines (Fe 57.5%-62.54%) and 48,000 t was lump ore (Fe 62.11%-64.4%).

  • Eastern India-based Electrosteel Casting Limited booked 4,000 t of iron ore lumps (Fe 64.12%) at the Karnataka auctions at INR 5,250/t.

  • Western India-based Electrotherm booked 8,000 t of iron ore lumps (Fe 65%) at INR 4,800/t from Vyasankere iron ore mines.

 

10 Feb 2022, 18:58 IST

 

 

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