- Nearly 65% of the offered quantity was booked in the auction
- Bids rose by up to INR 2,510/t ($34) over the set base price
The government of Goa organized the 25th e-auction for 1.7 mn t iron ore on 24th Mar’21. About 1.03 mn t (65% of total) iron ore was booked out of the total offered quantity. The auction witnessed limited participation due to the low grade of iron ore put to auction and weak demand in China on recently announced production cuts.
The majority of the quantity put under auction was low-grade with the highest grade (as per DMG analysis) reaching Fe 57.74%. Out of the total offered quantity, 1.41 mn t was ROM with grade ranging from Fe 27.6-57.74%, 0.18 mn t was fines having Fe content 18.6-50.6% and 0.03 mn t was lump ranging from Fe 39.8-50.86%.
Out of the total material put to auction, about 46% material was from Bandekar Brother Pvt Ltd at 0.75 MnT, followed by Kunda R Gharse at 0.36 MnT and Sesa Resources Limited at 0.1 mn t.
Bids rise sharply over the set base price
The base price of material offered was in the range of INR 450- 750/t. The bid fetched for the material were in the range INR 450- 2,510/t. The lot containing 26,00t lumps (Fe 47.9 from Bategal mines) fetched the highest bid at INR 2,510/t against a set base price of INR 450/t. It seems that the majority of auctioned lots will be exported, considering its low Fe content.
Similarly, lot containing fines (Fe 46/8%) fetched the highest bid of INR 1,110/t against set base price of INR 450/t
A hike in global prices could have resulted in an increase in bid prices in the recent auction. SteelMint’s assessment for Fe 58/57% fines (FoB East coast India) increased to $ 116/t CFR China in Mar’21 as against $ 112/t CFR China in Feb’21.
Vedanta remained the largest bidder
Vedanta remained the largest bidder in the auction at 0.24 mn t, followed by Kodee resources at 0.19 mn t, and Aparanta Minerals Private Limited at 0.09 mn t.
Qty in t
Source: DMG
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