First ever iron ore e-auction by Goa, Directorate Mines and Geology (DMG), for 0.53 MnT sold out completely. Interestingly no Indian steel miller participated.
The first Iron ore e-auction of 0.53 MnT held by Goa DMG, received overwhelming response from the Indian miners owner and exporters, according to trade sources close to this matter told SteelMint. Interestingly, no Indian steel miller took part in the mammoth auction of 15 MnT, which will go for 15-17 weeks.
Auction was scheduled in two parts. The first auction of 0.13 MnT was held between 10.00 hrs to 12.00 hrs, which was for smaller lots and the second auction was conducted between 14.00 hrs to 16.00 hrs, which was for 0.42 MnT.
Sources confirmed,”In the first session bid prices were slightly higher than the base prices, but in second auction, which was for bigger lots received much better response. One lot of Iron fines having 53 per cent Fe content was sold at INR 1,610 per MT, another lot with Fe 54 per cent was sold at INR 1,710 per MT and Fe 56 per cent was sold at INR 1,910 per MT, cargo lying at jetty.”
Biggest lot was of 0.14 MnT having 50.9 Iron content, carrying a base price of INR 910 per MT. Bids were received as high as INR 1,700 per MT because of large quantity, said sources.
People were anticipating big steel mills like JSW, Bhushan, JSPL to take part in this auction but none of them participated probably because of low grade iron ore. The auction process is governed under strict supervision of the apex court’s monitoring committee and held by the State Directorate of Mines & Geology as per the directives of the Supreme Court.
The ore, which has been lying at various jetties since September 2012, when SC banned the exports and fresh extraction will be auctioned through a proper system, a senior department official said. While total 15 MnT of ore is lying at jetties, mining leases and yards, only half a million was auctioned on 17 Feb, 2014.