Indian Iron ore imports have increased significantly owing to the Supreme Court’s directive on 16 May, 2014 to suspend mines in Odisha running under second deemed renewal.
This suspension led to stop operations 0f 26 mines, later the state government allowed captive miners to resume operations.
Indian imports are expected to touch 7-8 MnT in FY15 against 0.3 MnT in FY14 and 3 MnT in FY13.
Imports are largely taking place from South Africa, Australia and another African country by companies like JSW Steel, Tata Steel, Tata international and other merchant importers.
Imports of 64% Fe Lump from South African miner Kumba, were assessed at USD 104-106/DMT CFR West Coast of India. Last week, one shipment of 77,000 MT was made by Swiss Singapore, which was heard to be sold at around USD 105-106/MT CFR Kandla port.
SteelMint assessed that prices are almost at the same level. Another shipment is expected to receive at West Coast by 4th week of August.
Speaking to steel manufacturers, who bought this cargo for Sponge making, highlighted that cargo has slightly higher phosphorus content. Landed cost was assessed at INR 6,700-6,800/MT (including import duty of 2.5%).
Another manufacturer based in Gandhidham expected to import 53,000 MT Pellet vessels to unload this month. Trade participants speculated that cargo was bought from CIS country at around USD 135-140/MT CFR West Coast of India.
Steel makers in Western region mentioned that they are getting offers from Jindal Saw at around INR 7,800-7,900/MT (delivered to Gujarat), excluding CST of 2%.
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