Directorate of Mines & Geology (govt. of Goa) has scheduled 20th e-auction on 04 May’17. 1.63 MnT iron ore will be put under hammer via 20th e-auction. Iron ore produced in Goa is mostly of low-grade and is majorly exported to China.
Out of the offered quantity of 1.63 MnT , 0.96 MnT is ROM ranging from Fe 27.6-56.4%, 0.47 MnT is fines having Fe content 18.6-59.2% and 0.20 MnT is lump ranging from Fe 39-59%.
As per the latest notification, Goa DMG has kept base prices unchanged for the upcoming e-auction. Base price for all material type across all grades has been fixed at INR 500/MT.
Link to the base price and the lots to be put under auction
The material offered is majorly ROM and 94% of the offered quantity is of low-grade (i.e. less than Fe 58%). A market participant in conversation with SteelMint shared that there are less chances for the e-auction receiving good response as base prices have remained unchanged against previous e-auction.
Previous iron ore e-auction conducted on 21st Apr’17, received very dull response with 91% of the offered quantity (2.16 MnT) remaining unsold. Only single buyer – Timblo Pvt Ltd booked the entire allotted quantity of 0.18 MnT. Falling spot iron ore prices in China and increased discount on Indian low grade fines has narrowed down realizations for Indian exporters, following which exporters kept themselves away from participating in e-auction.
Spot iron ore prices in China have fallen sharply in Apr’17 amid decline in steel prices. Monthly average Fe 62% fines index fell by USD 17/MT M-o-M to USD 70/MT, CFR China in Apr’17.
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