Goan govt. organised 24th iron ore e-auction on 10th Nov'20. Out of 3 mn t iron ore put under hammer, 2.4 mn t was ROM, 0.6 MnT was fines and 0.06 MnT was lump. Sri Zacarias Antao(Late) was the largest supplier at 120,000 t followed by Kunda R Gharse at 85,500 t and Emco Goa Pvt Ltd at 78,580t.
Only 37% (i.e 1.10 mn t) of the offered quantity managed to receive bids.
Bids rise over the set base price
The base price of material offered was INR 300- 500/t. The bid prices for the material were in the range INR 300- 1,350/t. The lot containing 120,000t fines (Fe 48.95%) fetched the highest bid at INR 1,350/t against set base price of INR 300/t. It seems that majority of auctioned lots will be exported, considering their low Fe content.
Hike in global prices could have resulted in increase in bid prices in the recent auction. SteelMint's assessment for Fe 58/57% fines (FoB east coast India) increased from $ 76/t CFR China towards Oct'20 end to $ 82/t CFR China towards mid Nov'20.
Vedanta remained the largest bidder
Vedanta remained the largest bidder in the auction at 0.49 mn t, followed by VM Salgaocar and Brother Private Limited at 0.14 mn t, and Dhanlaxmi Enterprises at 0.12 mn t.
Qty in t
Goan miners have been granted an extension until the end of January 2021 to dispatch material mined before 16 March 2019, when mining came to halt in the state. Previously, the government of Goa has directed the transportation of the minerals in the state to be completed by 31st July'20.