Sesa Sterlite is to ship 70,000 MT Iron ore to China by the end of Dec’14. The company had made its 1st FY15 Iron ore shipment on 15 Dec, 2014.
Vessel named MV Double Prestige is expected to arrive at Panaji port today, as per SteelMint statistics.
Sesa Sterlite has already shipped 72,000 MT Iron ore in vessel named MV Moon Globe from Goa’s Panaji port to China, this week. Despite weak Iron ore prices in the international market, the company is exporting Iron ore, which had been purchased from Goa’s 5th e-auction held on 06 & 07 Nov, 2014.
As per our analysis, the material being exported is of low grade i.e. Fe 58% and the deals have been concluded at around USD 59/MT, CFR China. Though, global Iron ore prices are depressed, the exporter received higher sales price in contrast to the cost of purchase and hence, chose to export instead of in-house consumption.
Goa has exported 0.5 MnT Iron ore to China until now in the current fiscal year.
Sesa Sterlite’s Iron Ore Purchase from Goa E-auctions
|
E-auctions |
Allotted Qty | Prices* | |||
| Qty | Material Type | Grade | Base Price |
Bid Price |
|
| 1st | 68,141 | Fines (60,487) | Fe 54.28% | 1,380 | 1,640 |
| Lump (7,654) | Fe 54.39% | 1,400 | 1,640 | ||
| 2nd | 16,058 | Fines (16,058) | Fe 58.04% | 2,130 | 2,350 |
| 3rd | 230,649 | Fines (202,837) | Fe 62% | 2,160 | 2,277 |
| Lump (27,812) | Fe 59% | 1,740 | 1,900 | ||
| 4th | 404,624 | Fines (114,483) | Fe 63.19% | 1,760 | 3,020 |
| Lump (290,141) | Fe 57.95% | 1,020 | 1,020 | ||
| 5th | 128,000 | Fines (82,000) | Fe 61.6% | 900 | 1,340 |
| Lump (46,000) | Fe 47.75% | 500 | 500 | ||
*Grade & prices mentioned are based on highest quantity allotted
Qty in MT; Basic prices in INR/MT
Source: SteelMint Research
Out of 15 MnT Iron ore stockpile allowed to be sold via e-auctions in Goa, 4.9 MnT has already been allotted through five e-auctions since Feb’14.
Directorate of Mines & Geology (DMG), Goan government is yet to offer 10.1 MnT Iron ore through e-auctions, which is being delayed as weak global Iron ore prices has made exports non-profitable. Chinese spot Iron ore fines (Fe 62%) prices are below USD 70/MT, CFR and aren’t anticipated to recover soon.
In Apr’14-Nov’14, India has exported 3 MnT Iron ore, which is down by 69% in comparison to the same period of last fiscal year. India’s Iron ore export was 14.4 MnT in FY14; may fall to about 4 MnT in FY15.
Iron Ore Exports to China from Redi Port
A couple of Iron ore shipments (0.1 MnT) to China are expected to take place from India’s Redi port this month. Samruddha is to export 50,000 MT Iron ore and vessel named MV Goriantal Angel is at berth presently. Fomento Resources is to ship 50,000 MT Iron ore and vessel named MV Genco Aquitaine is expected to arrive at port on 20 Dec, 2014.
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