Buying interest slows for imported Iron ore over falling prices in domestic market. South African Kumba lump offers remain unchanged.
Imported iron ore offers for lump (Fe 64%) from South Africa are around USD 77-78/MT, CIF India for Panamax vessels. Last week the offers were hovering in the range of USD 78-79/MT, CIF India.
However buying interest has been limited due to falling Iron ore prices in domestic market and low demand from sponge iron manufacturers. Recently Odisha based merchant miner has cut Iron ore lump (5-18mm, Sponge Grade) prices by INR 350/MT (USD 5.5/MT).
A sponge iron manufacturer in Kandla confirmed to have offers for South African Kumba lumps at around USD 77-78/MT for July deliveries. He mentioned that for steel plants located in western region of India, prefer imported lumps over domestic lump/pellets, owing to high quality. Current offers for Fe 62/63% pellets from Jindal Saw was assessed at INR 5,600-5,700/MT (delivered Kandla Port, 2% CST extra).
Steel manufacturers based in eastern region of India have almost stopped importing ore owing to increasing supply in domestic market and falling prices. However, Jindal Steel has recently imported a high grade pellet vessel from Middle, for which premium was assessed at USD 40/MT.
Lump Premium falls
Lump premium falls to US$ 0.12/dry metric tonne unit (dmtu), which was hovering at 0.18/dmtu few weeks back. Current freight rate from South Africa to India are around US$ 11/MT for Panamax vessels.
In Jun’15, 0.74 MnT iron ore has been imported to India (till 24 Jun’15) and 0.15 MnT is expected to arrive by 27 Jun’15. Thus, Indian iron ore imports are expected to be around 0.89 MnT in this month.
Indian Iron Ore Imports in Jun’15
| Date | Qty | Shipper | Country | Unloading Port |
Vessel Name |
Status |
| 8-Jun-15 | 53,700 | N/A | South Africa | Vizag | Svenner | Berth |
| 13-Jun-15 | 57,000 | Shraddha Ispat | South Africa | Mormugao | Alam Maju | Berth |
| 4-Jun-15 | 60,500 | Kamchi Group | South Africa | Krishnapatnam | JS Tamise | Berth |
| 20-Jun-15 | 60,500 | Pushpit Steels | South Africa | Krishnapatnam | Kiran Adriatic | Berth |
| 12-Jun-15 | 54,300 | N/A | South Africa | Kandla | Santa Phoenix | Berth |
| 21-Jun-15 | 92,800 | N/A | South Africa | Kandla | Maritime Century | Berth |
| 1-Jun-15 | 163,400 | JSW Steel | South Africa | Jaigarh | Frontier Kotoboku | Berth |
| 15-Jun-15 | 90,900 | Essar | Brazil | Hazira | Guo Tuo 302 | Berth |
| 22-Jun-15 | 103,845 | Essar | Australia | Hazira | Shravan | Berth |
| 27-Jun-15 | 154,300 | N/A | South Africa | Mundra | Mineral Water | Expected |
| Total | 891,245 |
Qty in MT
N/A: Not Available
Provisional data
Source: SteelMint Stats,
Iron ore imports to India
Increased availability of
Iron ore production from
Leave a Reply