26% Iron Ore Sold via 15th Goan Iron Ore E-auction

The recent iron ore e-auction conducted in Goa received a cold response as only 26% of the offered material was sold.

Directorate of Mines & Geology, Govt. of Goa conducted 15th iron ore e-auction on 27 Apr’16. 2.11 MnT iron ore was put under hammer in 123 lots out of which only 0.55 MnT was sold.

As per the data released by Goa DMG, 0.55 MnT iron ore was sold. The e-auction fetched participation of the exporters. Royalline Resources remained the largest buyer at 0.23 MnT followed by Vedanta (0.18 MnT) and Crest Merchandise (0.03 MnT).

Buyer-wise allotted quantity in 15th Goa iron ore e-auction

Qty in MT
Source: SteelMint Research, Goa DMG

42% of the offered fines sold, ROM & lump less preferred

1. 0.15 MnT lump was offered out of which 0.04 MnT lump lots received bids and all the lots received bids at par with the base price except one lot. Lump (Fe 51.9) located at Vagus jetty was base priced at INR 730/MT but it fetched bids at INR 810/MT
2. Out of 0.48 MnT fines offered, 0.2 MnT was sold. Most of the lots fetched bids equivalent to base price. However some lots fetched high bids. Lot containing fines (Fe 60%) located at Vagus jetty received bids at INR 1,440/MT against its base price of INR 930/MT
3. Out of 1.48 MnT ROM offered, 0.3 MnT aws sold. Most of the lots fetched flat bids, while some fetched higher bids. For instance, ROM (Fe 60%) located at Suctolim mine was base priced at INR 560/MT but it received bids at INR 1,200/MT

Out of 15 e-auctions conducted so far in Goa, 20 MnT was offered out of which only 8.78 MnT has been sold, thus around 6.3 MnT iron ore out of the 15.1 MnT stockpile is yet to be sold.