Amid increase in spot iron ore prices, imported iron ore offers to India have also witnessed improvement.
Imported iron ore offers to India have moved up further by USD 3/MT W-o-W. Offers for South African lump (Fe 64%) are at USD 80/MT, CIF India for shipments to arrive on last week of June or early week of July.
Last week the offers for South African lump (Fe 64%) were in the range of USD 75-78/MT, CIF India for June shipments.
Pellet manufacturers in southern India are hopeful that over increasing prices of imported iron ore, sponge iron manufacturers might prefer pellets available in domestic market.
A market participant based in Southern India stated that – “Imported iron ore offers from South Africa which were in the range of USD 70-72/MT, CIF India in Apr’15 have increased to USD 80/MT, CIF India. We expect that Pellet prices in southern India might improve in the beginning of July as sponge iron manufacturers are silent over rising global iron ore prices.”
India imported 0.9 MnT iron ore till 29 May, 2015. Out of which, share of imports from South Africa is around 78% i.e 0.7 MnT. 0.3 MnT is yet to arrive by the end of this month.
Monthly Average Spot Iron Ore Prices Up by USD 9/MT
Monthly average Spot iron ore fines (Fe 62%) prices in China have increased by USD 9/MT M-o-M to USD 60/MT in May’15 over increased buying from steel mills which were falling short of inventories.
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