India: About 66% quantity sold in Goa iron ore e-auction, bids rise sharply

The government of Goa organised the 27th e-auction for 2.217 mnt of iron ore on 19 Jan'22. About 1.45 mnt (66%) was booked out of the total offered quantity.

The majority of the quantity put to auction was low-grade iron ore, with the highest grade being Fe 62.16%, as per Department of Mines and Geology analysis. Out of the total offered quantity, 1.33 mnt was run-of-mine (ROM) within grades ranging Fe 28.53-62.16%, 0.46 mnt were fines having Fe content of 18.6-61.64%, 0.08 mnt were lumps ranging Fe 38.94-62.16% and 0.35 mnt were tailings ranging Fe 43.33-48.88%.

Out of the offered quantity, ROM (including spillage and tailings) received active response as 71% of the total material was booked. About 65% of total lumps and 48% of total fines offered for the auction received bids.

About 26% of the total material put to auction was from Navelim Jetty mine at 0.58 mnt, followed by Surla mines at 0.37 mnt and Pale mine at 0.27 mnt.

Bids rise sharply over set base price

The base price for the material offered was in the range of INR 300-450/t while bids fetched were in the range of INR 300-5,930/t. Thus, the price difference between bids and base price was upto INR 5,480/t. A lot containing 4,900 t of lumps (Fe 61.92%) offered by Damodar Mangalji and Co. fetched the highest bid of INR 5,930/t against the set base price of INR 450/t.

The sharp hike in bid prices can be attributed to the price rise in global and domestic markets. Chinese spot iron ore fines Fe 62% prices opened last week at $133.7/t CNF China and assessed at $147.9/t, CNF China towards the weekend. Seaborne iron ore prices rose on a positive demand outlook ahead of the Lunar New Year holidays and Winter Olympics.

Sesa Resources the largest bidder

Sesa Resources Limited (including Vedanta) remained the largest bidder in the auction at 0.84 mnt, followed by Damodar Mangalji and Co. Ltd. at 0.25 mnt.

Qty in tonne (t)
Source: DMG