India: Goa Government holds 3rd E-auction on decline in Prices

Goa Government has kept 3rd e-auction on hold owing to falling Iron ore prices in the global market.

Looking at falling global Iron ore prices, Goa Government has put 3^rd e-auction on hold, according to Prasanna Acharya, Director of Goa Mines & Geology (DMG). After the Supreme Court’s order on liquidating stock (15 MnT) lying at various jetties, stock yards, mines head and port, DMG had conducted 1^st auction on 17 Jan, 2014, 2^nd auction on 05 Feb, 2014 and 3^rd auction was to be conducted in this week.

DMG has auctioned around 1.7 MnT Iron ore till now and received good response from Indian exporters. With sharp decline in ore prices, Indian exporters are in apprehension that their cargoes will be either rejected or come under disputes.

Spot Iron ore prices in Chinese market, which is eventually the largest buyer of Seaborne ore has dropped over USD 14/MT owing to weak economic data and piled up inventories at Chinese port. Importers based in China comment that prices are under pressure on low buying from mills. Offers for Fe 62% has dropped from USD 125/MT to around USD 109/MT CFR China.

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*Till 18 Mar, 2014