Little impact on China spot iron ore market from stockpiles in India's Goa: sources

The Indian Suprem Court granted mid-October mining lessees in Goa an extension until end January 2021 to remove iron ore that was mined on or before March 15, 2018, when a statewide ban on mining was imposed.

Market sources estimated the total stockpile volumes to be about 4 million mt, of which 1 million-1.5 million mt were likely to be exported.

Despite continued high price levels for iron ore into China, logistical constraints and fundamental differences compared with east Indian iron ore brands were seen as factors limiting any market impact of Goa iron ore supply.

One of the key logistical differences for the export of Goa iron ore would be a heavy reliance on barges to transport iron ore to the export port at Mormugao compared with trucks and rail in east India.
 

While several sources said lower logistical costs for Goa-based producers would provide increased price competitiveness, the availability of barges may prove to be a hurdle.

Lengthy truck queues to enter the port of Paradip and port congestions continued to be major issues for east Indian producers but Indian sources said logistical situations were more favorable toward larger producers, given the availability of higher transport quotas and individual own berths.