DMG Goa, offered 2.1 MnT Iron ore (1 MnT Fines, 0.7 MnT Lumps & 0.4 MnT ROM) in 4th e-auction; held from 19 to 21 Aug, 2014. Out of the total, 1.9 MnT Iron ore (1 MnT Fines, 0.6 MnT Lumps, 0.3 MnT ROM) was sold.
Indian steel mills purchased 0.7 MnT of the material to secure Iron ore availability. While, exporters namely Bagadiya brothers, Fomento, Royalline Resources, Agrawal Minerals and VM Salgocar have procured 1.2 MnT, witnessing weak prices in the global market.
JSW Steel has procured 147,000 MT ore against 11,000 MT in 3rd e-auction. Whereas, Sesa Sterlite has purchased about 400,000 MT medium to high grade ore and Kalinga Allied industries has purchased 125,000 MT ore.
“Domestic steel mills have shown interest and we expect their participation to increase in upcoming e-auctions,” said an official of Directorate of Mines & Geology (DMG), Goa government.
|
Buyers |
Total Allotted Qty |
Cargo Type |
Allotted Qty |
Grade |
Base Price (INR/MT) |
Base Price (USD/MT) |
Bid Price (INR/MT) |
Bid Price (USD/MT) |
|
| Fomento Resources |
790,491 |
Fines |
386,948 |
56.5 |
938 |
16 |
1,042 |
17 |
|
|
Lumps |
80,543 |
57 |
901 |
15 |
972 |
16 |
|||
|
ROM |
323,000 |
57 |
838 |
14 |
1,216 |
20 |
|||
| Sesa Sterlite |
404,624 |
Fines |
114,483 |
59 |
1,322 |
22 |
2,120 |
35 |
|
|
Lumps |
290,141 |
59 |
1,175 |
20 |
1,200 |
20 |
|||
| Royalline Resources |
257,000 |
Fines |
186,000 |
55 |
890 |
15 |
1,028 |
17 |
|
|
Lumps |
71,000 |
55.7 |
872 |
15 |
915 |
15 |
|||
| JSW Steel |
147,000 |
Fines |
88,000 |
57.8 |
1,171 |
20 |
1,355 |
23 |
|
|
Lumps |
59,000 |
59.8 |
1,340 |
22 |
1,996 |
33 |
|||
| Kalinga Allied Industries |
125,000 |
Fines |
67,000 |
55.4 |
943 |
16 |
1,073 |
18 |
|
|
Lumps |
58,000 |
58.5 |
1,050 |
18 |
1,444 |
24 |
|||
| Bagadiya Brothers |
96,000 |
Fines |
71,000 |
58.9 |
1,328 |
22 |
1,579 |
26 |
|
|
Lumps |
25,000 |
56.5 |
964 |
16 |
990 |
17 |
|||
| Agrawal Minerals |
48,000 |
Fines |
48,000 |
57 |
1,120 |
19 |
1,428 |
24 |
|
| V M Salgaocar & Bro |
41,000 |
Lumps |
41,000 |
52.5 |
630 |
11 |
690 |
12 |
|
| Total |
1,909,115 |
1,909,115 |
|
|
|
Exchange rate USD/INR – 60
Grade, base price and bid price are weighted average
Qty in MT; Grade in %
Source: SteelMint Research
Parag M Nagarcenkar, Assistant Director of DMG, Goa Government, in a short discussion with SteelMint said, “We sold the offered material at base price on the first two days because fines prices in China are losing strength. And, on the 3rd, we saw a good competition for high grade ore, in which bids were higher than projected.
We will conduct the 5th e-auction for 2.2 MnT Iron ore on 02 Sep, 2014 and are hopeful of Iron ore mining to re-start by mid-January 2015 in Goa.”
In Nov’13, the Supreme Court had permitted to sale 15 MnT of Iron ore stockpile, which was mined prior to the enforcement of ban. The raw material is laying at various sites in the state i.e. 10.8 MnT at mines, 4 MnT at jetty and about 0.2 MnT at various ports. 10.6 MnT of ore is yet to be offered for sale.
Snapshot of Goa E-auctions
|
Particulars |
1st E-auction |
2nd E-auction |
3rd E-auction |
4th E-auction |
|
Available Qty |
0.6 |
1 |
0.57 |
2.1 |
|
Allotted Qty |
0.5 |
1 |
0.50 |
1.9 |
Qty in MnT
Source: SteelMint Research
Spot Iron ore fines prices in China are at USD 87/MT CFR China; down by USD 6/MT CNF China (M-o-M).
India was positioned as the world’s 3rd largest Iron ore exporter prior to the enforcement of mining ban in Goa. The country had exported 14.4 MnT Iron ore in FY14. It is anticipated that the exports will further deteriorate this fiscal as Fines prices in China have dived down to 5 years low.
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