India: JSW Steel recommence Iron Ore Purchases from Goa E-auction

Directorate of Mines & Geology (govt. of Goa) had scheduled two e-auctions on 04 & 05 May'17. Quantities offered were 1.63 MnT and 1.61 MnT via 20^th & 21^st e-auctions.

Base price for all material type across all grades remained unchanged at INR 500/MT.

In line with previous report of SteelMint, e-auctions received dull response. Exporters kept themselves away from participating over decline in global prices and unchanged base prices and was another reason that fetched limited participation from bidders.

In 20^th e-auction, out of 1.63 MnT iron ore offered, only single lot containing 89,940 MT lump (Fe 59%) was sold. The lot was sold at bid price of INR 500/MT. JSW Steel booked the entire quantity. The steel maker resumed purchases from Goa e-auctions after a span of nearly 1.5 years. It had last participated in the Goa e-auction conducted on 24 Dec'15.

In the 21^st e-auction, out of 1.61 MnT iron ore offered only 9,990 MT ore was sold. Faldessai Mines and Minerals International was the single bidder and entire quantity was allotted at base price i.e. INR 500/MT. Majority of the lots booked by the company comprises of lump (Fe 60-63%).

Goa iron ore e-auctions - A Snapshot

15.1 MnT iron ore which was mined prior to the imposition of mining ban imposed in the state long back in Oct'12, out of which Goa DMG has managed to sell only 10.95 MnT iron ore since e-auction procedure started in the state.

Vedanta has remained by far the largest buyer at 3.85 MnT followed by Royalline Resources at 1.05 MnT and Fomento Resources at 1.03 MnT.