Average response to 3rd round of Goa iron ore auction

Goa auctioned 600,000 tonnes of low grade iron ore after two successful rounds of auctions of over 1.5 mn tonnes weeks ago

The third round of iron ore auction by the government of Goa received an average response, amid depressed market sentiment and no immediate export possibility.

The state government conducted an auction of 600,000 tonnes of low grade ore after two successful rounds of 1.5 million tonnes some weeks earlier. In those, the response had been encouraging.

“The response is average,” said Shivanand V Salgaocar, president, Goa Mineral Ore Exporters Association. “It is a depressed market sentiment, as no export is possible during the coming monsoon season.”

While the number and identity of participants would be known only on Tuesday, experts believe a majority were traders and exporters, as witnessed in the previous two auctions.  Iron ore exports generally stop during the monsoon season, due to waterlogging at jetties. Also, those who bought ore in previous auctions are still facing hurdles in export.