Increasing iron ore prices in China coupled with slashed earnest money deposit amount may attract participation of exporters in the upcoming e-auction.
Directorate of Mines & Geology (DMG), government of Goa is likely to put 2.11 MnT iron ore under hammer for the 15th e-auction via 123 lots. The auction is to be conducted on 27 Apr’16.
The offered quantity comprises of ROM (1.48 MnT), fines (0.48 MnT) and lump (0.15 MnT).
The grade of the offered quantity ranges from Fe 41%-63%. Majority of the offered quantity (nearly 85%) comprises of low grade material (i.e. less than Fe 58%).
A larger part of iron ore fines & lump that would be offered in the e-auction has iron ore content below Fe 58%. It is to be noted that Indian govt. had scrapped export duty on both low grade fines & lump in the Union Budget presented on 29 Feb’16 in order to boost exports from Goa.
Link to the proposed lots of 15th e-auction
Goa DMG slashed EMD for e-auction enrollment procedure-
In order to get maximum participation in the upcoming e-auction, Goa DMG has slashed the EMD amount for the enrollment procedure. Now the EMD payable for the enrollment shall be to the tune of INR 1 lakh for bidding upto 5,000 MT and in multiples of INR 1 lakh for every additional quantity of 5,000 MT. Earlier EMD payable was to the extent of INR 5 lakh for bidding upto 1,000 MT and in multiples of INR 5 lakh for every additional quantity of 1,000 MT.
Similarly for unlimited bidding it is now to the tune of INR 50 lakh which was earlier INR 10 crores.
Increasing iron ore prices in China to benefit exporters-
Seaborne iron ore prices have moved up sharply (up by USD 8/MT W-o-W) last week making it a merry time for the low grade iron ore exporters in Goa. Currently index for Fe 57% fines are assessed at USD 48/MT, FoB India.
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