PANAJI: Already ailing due to the recent ban on mining activities in the State, stakeholders in the business of ore exports have nothing to cheer in the backdrop of the plunge and plunge of ore prices, which of late seems to be unstoppable, causing a huge concern.
Be it the downturn in Chinese economy or the pumping of massive quantities of ore in the international market, the prices have been heading south since 2011 - the golden era when ore of various grades fetched 70 to 80 percent more then the prevailing rates.
“The price of 56-grade iron ore, which Goa traditionally exports, has slipped to $25 a tonne from $30-32 a couple of months back,” a source in the mining industry informed who wished to remain anonymous. Ever since Chinese economy showed signs of downturn, iron ore prices started falling and they have totally collapsed by now. Iron ore price of various grades are down by 70-80% compared to their peak levels in 2011.
Apart from Chinese slowdown, Australian mining firms have pumped in a lot of ore in the international market, which has increased the supply, thereby bringing down prices.
High grade iron ore has taken one of the hardest hits. Couple of months ago the price of 62-grade iron ore hovered around $54 a tonne, which as of today is just under $40. Since every paisa counts now, mining companies are expecting the central government to completely do away with export duty on ore which is below 58-grade.
