According to market sources report to SteelMint, demand for imported South African lumps witnessed a sharp uptick from western India based mills who are keen to book vessels for October deliveries. However, tight availability of both Kumba and Assmang lump is a matter of concern.
A South African lump supplier shared “We have two vessels to be loaded of 90,000 MT each. The shipments are scheduled for September and early October. Demand for imported iron ore in India is high, but the weather constraints and port congestion along with the annual maintenance shut down at some ports has made the loading difficult, which may cause delay in shipments”.
As per sources these vessels were booked at around USD 93-94/MT, CFR India around 2-3 weeks back.
Western India based mills are facing extreme raw material shortage. Spot lump premium has increased by USD 0.0460/DMTU this week to USD 0.3360/DMTU, CFR, due to better demand.
Jindal SAW increases pellet offers further
Jindal SAW -western India pellet maker has significant increased in pellet (Fe 63%) prices by INR 500/MT W-o-W to INR 9,000/MT (delivered Kandla) against INR 8,800/MT towards end of last week. The pellet maker has also booked decent quantity for exports to South Korea.
Increasing Indian pellet export offers have supported surge in lump prices. According to SteelMint assessment Indian pellet export offers are assessed at USD 140-143/MT, FoB. The spot pellet premium Fe 65% grade pellets have witnessed continuous surge W-o-W and is hovering at record high levels of USD 89.55/DMT, CFR China. However, the soaring pellet prices have made lumps comparatively less expensive, leading to increased demand.
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