The 6th Iron ore e-auction in Goa which was concluded on May 19, received high bid prices for upper grade material and flat bid prices for lower grade. DMG (Govt of Goa) offered 0.99 MnT extracted Iron ore, stocked at mines head, plant, jetty and processing plant, for e-auction sale.
We have categorized below as to what was the increase in Bid prices for few of the sold out Lots:
|
Material Type |
Grade (Fe%) |
Increase over Base Price (INR/MT) |
| Fines | 45-50 | 230 |
| 51-55 | 110-800 | |
| 56-60 | 130-520 | |
| Fines/Lump | 54 | = |
| Lump | 45-50 | 20 |
| 51-55 | 20-200 | |
| 56-60 | 100-580 |
The link below clearly states that low grade Iron has been sold at base price. While, superior quality material won high bid prices.
For instance, 12,680 MT of Fe 57% lump in Lot no. 48 received bid price of INR 1,080/MT against base price of INR 500/MT. Also, 139,620 MT of Fe 51% fines in Lot no. 15 also was sold at INR 1,430/MT, base price of which was INR 630/MT.
Link to the details for few sold out Lots:
In line with our anticipation, Sesa Sterlite purchased a good quantity of Iron ore fines and lumps of different grades as they had to, in order to run the Pig iron plant at rated capacity.
The Blast Furnace operator has an advantage of blending the low grade Ore purchased from Goa e-auction along with high grade Iron ore (Fe 61-65%) procured from Karnataka e-auctions.
Sponge iron plants based in Goa and Karnataka participated as well. Quantity bought for domestic utilization was higher because interest from exporters was limited and they placed flat price bids for lower grade.
Leave a Reply