The government of western Indian state of Goa is concerned that unsold stocks of low grade iron ore will put pressure on prices when the new mining season starts next month, a government official said on Thursday, September 28.
The official said that the government was able to e-auction about 11.2 million mt of low grade iron ore stocks against a total volume of 15.5 million mt of low grade ore available during the previous mining season from October 2016 to June 2017 in Goa.
He said that combination of unsold stocks at the auction coupled with few takers for low grade ore among buyers predominantly from China will act as a dampener for miners to optimize production in the new mining season following the end of monsoon rains.
Prices of low grade iron ore fines with Fe content of 58 percent and lower have fallen to levels of $45/mt CFR China and there are very few buyers for low grade raw material, the government official added.