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India: 52% sold in recent Goa iron ore e-auction

Nearly 52% of the offered quantity was booked in the auction Bids rose by up to INR 2,760/t ($38/t) over the set base price The government of Goa organised the 26th e-aucti...

Fines/Lumps
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16 Sep 2021, 17:19 IST
India: 52% sold in recent Goa iron ore e-auction

  • Nearly 52% of the offered quantity was booked in the auction

  • Bids rose by up to INR 2,760/t ($38/t) over the set base price

The government of Goa organised the 26th e-auction for 1.574 million tonnes (mn t) of iron ore on 31 Aug'21. About 0.81 mn t (52% of total) of this volume 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 curbs.

The majority of the quantity put under auction was low-grade with the highest grade (as per DMG analysis) reaching Fe 58.01%. Out of the total offered quantity, 1.12 mn t is run-of-mine (ROM) and within grades ranging from Fe 30.12-57.74%, 0.33 mn t are fines having Fe content of 18.6-50.60% and 0.12 mn t are lumps ranging from Fe 38.94-58.01%. Out of the total material put to auction, about 46% of the 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 the material offered was in the range of INR 350- 500/t. The bid fetched for the material were in the range INR 350- 2,760/t. The lot containing 11,000t iron ore lumps (Fe 58.01% from Trimurthy Jetty) fetched the highest bid at INR 2,760/t against a set base price of INR 500/t. It seems that the majority of auctioned lots will be exported, considering its low Fe content.

Similarly, a lot containing ROM (Fe 52%) fetched the highest bid of INR 1,810/t against the set base price of INR 500/t.

SteelMint's assessment for Fe 58/57% fines (FOB east coast India) decreased to $71/t CFR China in Aug'21 as against $103/t CFR China in Jul'21.

Jayeebhava Alluri Industries becomes the largest bidder

Jayeebhava Alluri Industries becomes the largest bidder in the auction at 0.19 mn t, followed by Surakshit Distributors Private Limited at 0.08 mn t, and Ashtek Consultancy Private Limited at 0.07 mn t.

India: 52% sold in recent Goa iron ore e-auction
Qty in tonne (t)
Source: DMG

 

 

16 Sep 2021, 17:19 IST

 

 

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