Single Bidder in Goa 19th Iron Ore E-auction

SteelMint had reported that Goa’s 19th iron ore e-auction conducted on 21 Apr’17 received very dull response with almost 91% of the offered material remaining unsold.

The major reason behind dull response to the e-auction was majority (96%) of the ore offered was of low-grade (i.e. having Fe content below 58%). Recent sharp decline in global iron ore prices has worsened the situation further for Indian iron ore exporters and also discount on low-grade Indian iron ore fines has been increasing continuously and presently it attracts a discount of 40-41%. Thus reduced viability in exports, must have kept exporters away from participating in the e-auction.

Total offered quantity was 2.16 MnT. Out of the total quantity auctioned, 1.77 MnT was ROM, 0.24 MnT was fines, 0.15 MnT was lump.

Grade of ROM offered was from Fe 40.6-59%. Fines offered were in range from Fe 44.6-63%. Grade of lump offered in the e-auction varied from Fe 46-62%. Base prices remain unchanged at INR 500/MT for all material type across all grades.

According to the recent bid sheet released by Directorate of Mines & Geology (DMG), Govt. of Goa, only 0.186 MnT iron ore was sold and the entire quantity was sold to a single bidder – Timblo Pvt. Ltd.

Material-wise allotted quantity in Goa 19th e-auction

Fig in MT
Source: Goa DMG

19th Goa E-auction highlights:

1. Out of 236,880 MT fines offered, 26% was sold. The lots sold had Fe content ranging from 54-63%. All the lots were allotted at base price of INR 500/MT.

2. 1,774,205 MT ROM was offered, out of which only 5% was sold. 83,380 MT ROM (Fe 59.2%) located at Patiem/Tudoau mine was sold. Bids for the same went up by 52% over the base price as the lot received bids at INR 760/MT.

3. Out of 148,820 MT iron ore lump offered 40,990 MT was sold. Entire quantity of lump sold had Fe ranging from 51-62%. The bids remained flat at INR 500/MT.