India: Goa mines directorate resumes iron ore auction after 5 months' gap

The Directorate of Mines and Geology (DMG), Goa, is all set to conduct its 26th e-auction for 2.037 million tonnes (mn t) of iron ore on 27 Aug'21. The auction has been conducted after a break of almost five months. It has been notified that the material to be auctioned consists of fines, lumps and run-of-mine (ROM).

Most of the quantity put under auction is of low grade with the highest grade (as per DMG analysis) being Fe 58.01%. Among the total offered quantity, 1.63 mn t is ROM and within grades ranging from Fe 30.12-57.74%, 0.31 mn t are fines having Fe content of 18.6-50.84% and 0.09 mn t are lumps ranging from Fe 38.94-58.01%.

Out of the total material put to auction, about 36% is from Bandekar Brother Pvt Ltd at 0.73 mn t, followed by Kunda R Gharse at 0.36 mn t and Shri Zacarias Antao (Late) at 0.1 mn t. Other major suppliers include Soc.Timblo Irmaos Ltd (PTI), V.G. Quenim (Late) and Vedanta Ltd.

In the last e-auction held in 24th Mar'21, about 1.62 mn t of iron ore was put under the hammer out of which only 64% (i.e 1.03 mn t) of the offered quantity received bids.

China steel output curbs weigh down global iron ore prices

Iron ore prices slumped to near three-month lows due to strict implementation of carbon emission control norms in China. The country's imports have dropped following its move to control steel production during the current half.

Chinese spot iron ore fines (Fe62%) price dropped to $160/t, CFR China today (18th Aug'21).

SteelMint's weekly low-grade Indian iron ore fines (Fe 57%) export index moved down by $12/t to $84/t FoB East coast India on 12 Aug'21. SteelMint's weekly export index for low-grade Indian iron ore fines (Fe 57%) decreased by $12/t w-o-w to $57/t FoB east coast India on 12 Aug'21. The index is at an 11-month low, as per data maintained with SteelMint.

Indian iron ore export shipments decreased to 2.05 mn t in Jul'21, down 2% on a m-o-m basis as compared to 2.09 mn t in Jun'21, according to vessel line-up data maintained with SteelMint. Exports decreased due to limited Chinese demand for low-grade ore. China was the sole importer of Indian iron ore with 2.05 mn t in Jul'21.