Sesa Sterlite has made its 1st Iron ore shipment in FY15 and a couple of shipments are expected to take place till Jan’15, according to SteelMint.
Sesa Sterlite has shipped 72,000 MT Iron ore in vessel named MV Moon Globe from Goa’s Panaji port to China, as per SteelMint statistics. Despite weak Iron ore prices in the international market, the company has exported Iron ore, which had been purchased from Goa’s 5th e-auction held on 06 & 07 Nov, 2014.
As per our analysis, the material exported is of low grade i.e. Fe 58% and the deal has been concluded at around USD 59/MT CFR China. Though, global Iron ore prices are depressed, the exporter received higher sales price in contrast to the cost of purchase and hence, chose to export.
Goa has exported 0.5 MnT Iron ore to China until now in the current fiscal year.
Sesa Sterlite Iron Ore Purchase from Goa E-auctions
| E-auctions | Allotted Qty | Prices* | |||
| Qty | Material Type | Grade | Base Price | Bid Price | |
| 1st | 68,141 | Fines 60,487 | Fe 54.28% | 1,380 | 1,640 |
| Lump 7,654 | Fe 54.39% | 1,400 | 1,640 | ||
| 2nd | 16,058 | Fines 16,058 | Fe 58.04% | 2,130 | 2,350 |
| 3rd | 230,649 | Fines 202,837 | Fe 62% | 2,160 | 2,277 |
| Lump 27,812 | Fe 59% | 1,740 | 1,900 | ||
| 4th | 404,624 | Fines 114,483 | Fe 63.19% | 1,760 | 3,020 |
| Lump 290,141 | Fe 57.95% | 1,020 | 1,020 | ||
| 5th | 128,000 | Fines 82,000 | Fe 61.6% | 900 | 1,340 |
| Lump 46,000 | Fe 47.75% | 500 | 500 | ||
*Grade & Prices mentioned are based on highest quantity allotted
Qty in MT; Basic prices in INR/MT
Source: SteelMint Research
Out of 15 MnT Iron ore stockpile allowed to be sold via e-auctions in Goa, 4.9 MnT has already been allotted through five e-auctions since Feb’14.
Directorate of Mines & Geology (DMG), Goan government is yet to offer 10.1 MnT Iron ore through e-auctions, which is being delayed as weak global Iron ore prices has made exports non-profitable.
Chinese spot Iron ore fines (Fe 62%) prices are below USD 70/MT CFR and aren’t anticipated to recover soon. In Apr’14-Nov’14, India has exported 3 MnT Iron ore, which is down by 69% in comparison to the same period of last fiscal year. India’s Iron ore exports at 14.4 MnT in FY14 may fall to about 4 MnT in FY15.
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