India: Karnataka's iron ore e-auction sales volumes rise m-o-m in Apr'24
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- New ECs increase auction volumes
- Auction prices inch down m-o-m
Iron ore e-auction sales volumes in Karnataka recorded a significant rise m-o-m to 0.78 million tonnes (mnt) in April 2024 from 0.28 mnt in March 2024, as per BigMint data. Out of the total volume of iron ore sold via auctions, 425,998 tonnes (t) of fines, and 362,000 t of lumps were sold during the month.
In April, the advent of the new financial year, leading to the fresh Environmental Clearance (EC) limits for mining activities. This renewal not only rejuvenated the number of auctions conducted but also increased the auction volumes, surpassing the figures from the previous month.
Auction sales record a significant hike in NMDC's auction - NMDC, India's top iron ore miner, auctioned 472,000 t from Karnataka in April 2024, a significant rise recorded m-o-m as compared with 132,000 t in March 2024. Out of the total volume of iron ore, 304,000 t of fines, and 168,000 t of lumps were sold during the month.
Other miners' iron ore sales via auction outcomes:
- SMIORE emerged as the second-leading miner by selling 132,000 t of iron ore in April 2024.
- KSMCL sold 127,998 t of iron ore via auctions in April, 2024. However, sales recorded a fall of 3% against 132,000 t in March, 2024.
- Vedanta sold 40,000 t of iron ore sales in April 2024, down by 17% as compared to 48,000 t in March, 2024.
- VESCO sold 16,000 t of iron ore sales in April 2024, whereas, 43% drop were recorded compared to 28,000 t of iron ore sales in March 2024.
Iron ore prices decline m-o-m: The monthly weighted average prices of iron ore lumps and fines declined m-o-m. Weighted average prices of Fe 60% fines and Fe 63% lumps fall by INR 100/t m-o-m to INR 4,350/t, and INR 4,850/t respectively. Prices are exclusive of taxes.
Outlook:
As the new EC limits come into effect and the monsoon emerge in the next few months, miners are set to increase iron ore auctions. Meanwhile, steelmakers are gearing up for restocking activities in the upcoming month.