In line with decline in global iron ore prices, imported iron ore offers to India have also fallen marginally this week.
Imported iron ore offers to India have slipped by USD 2-3/MT W-o-W. Prices for imported South African lump (Fe 64%) which were around USD 77-80/MT, CIF India last week have fallen to USD 75-78/MT, CIF India this week for June deliveries. While, for immediate delivery offers are around USD 75-76/MT, CIF India.
*till 19 May’15
Iron Ore Imports to India expected to be around 1 MnT in May’15
Against last month, Iron ore imports to India have increased comparatively in May’15. Around 0.6 MnT Iron ore has been imported to India. 0.4 MnT is expected to arrive by the end of this month.
Availability of Iron Ore in Odisha likely to improve further
Iron ore availability in Odisha has witnessed improvement and is likely to improve further. KJS Ahulwalia iron ore mines have resumed iron ore sales. Another miner- KN Ram has also been allowed to resume iron ore sales & will start offering iron ore in merchant market from next week on wards.
Major merchant miners in Odisha namely Rungta Mines, Serajuddin Mines & Indrani Patnaik have reduced iron ore prices in the first week of this month. Lump prices have fallen by upto INR 750/MT and fines prices have declined by upto INR 300/MT.
With resumption of mines, there are possibilities that prices in domestic market might fall further in the short run. Owing to above mentioned reasons coupled with depreciating Indian currency iron ore imports to India might slowdown.
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