India: Goa DMG notifies base price for tomorrow's iron ore e-auction

Govt. of Goa is all set to conduct next round of e-auction after a gap of almost four months. It has notified the base price of iron ore lots for 25th e-auction which is to be held on 24th Mar'21. Total quantity put up for auction is 1.62 mn t with base price ranging from INR 450- 750/t.

• Majority of the quantity put under auction is low-grade with the highest grade (as per DMG analysis) reaching Fe 57.74%. Out of the total offered quantity, 1.41 mn t is ROM with grade ranging from Fe 27.6-57.74%, 0.18 mn t is fines having Fe content 18.6-50.6% and 0.03 mn t is lump ranging from Fe 39.8-50.86%.
  
  
• Out of the total material put to auction, about 46% material is 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. Other major suppliers include V.G. Quenim (Late), Baddrudin Hussainbhai Mavani, and Soc.Timblo Irmaos Ltd (PTI).
  
  

Link to base price of offered lots

In the last e-auction held in Nov'20 auction, about 3 mn t of iron ore was put under hammer out of which only 37% (i.e 1.10 mn t) of the offered quantity received bids.

Indian iron ore exports jumped sharply in CY'20 -Indian iron ore export shipments increased to 40.72 mn t in CY'20, up more than two folds on yearly basis as compared to 19.14 mn t in CY'19, according to vessel line up data maintained with SteelMint.Exports from Goa have remained on the lower side in absence of fresh mining. Iron ore exports form Murmugao and Redi port together contributed for around 14% of total CY'20 exports.

Tangshan production cuts weigh down global iron ore prices -Iron ore procurement in China's Tangshan slowed down significantly due to strict implementation of environmental controls on truck deliveries and sintering operations on March 9, following a renewed emergency response to heavy pollution on March 7. Later, China's iron ore market was bracing for pollution curbs on steelmakers in Tangshan to become the new normal after local authorities announced plans to impose production controls on 23 steelmakers from 20 Mar'21 to 31 Dec'21 in a bid to lower emissions by 30%-50%. The escalating sintering and production curbs in Tangshan raised price volatility, keeping buyers on the sidelines.

Chinese spot iron ore fines (Fe 62%) price dropped to $ 156.35/t, CFR China yesterday (22nd Mar).

SteelMint's weekly low-grade Indian iron ore fines (Fe 57%) export index stood at $89/t FoB East coast India on 18 Mar'21.The prices have recorded a drop of $3/t on m-o-m basis.