Offers for imported lump from South Africa are around USD 62/MT, CIF West Coast India for shipments to arrive in 2nd week of Aug’15. For immediate delivery, the offers are around USD 65/MT, CIF West Coast India.
South African Kumba lump is very popular among sponge iron units in India. But consistently falling sponge iron prices in domestic market has brought down buying interest. India is the largest sponge iron country in the world, which has around 47 MnT installed capacity. Unfortunately utilization levels have been just 40- 50% in last few years.
Imported South African lump remained a preferred choice for Gujarat based steel mills. Pellet plant of Jindal Saw is shut down for maintenance purpose. Presently, the company is offering Fe 63% pellet (stock in hand) at INR 5,100/MT, delivered Kandla.
India has imported 0.39 MnT in this month (till 24 July’15). Total iron ore imports to India this month might be around 0.64 MnT. Iron ore imports will remain weak in July’15 against last month. In June’15, iron ore imports stood at 0.89 MnT.
Status of Iron Ore Import Vessels in July’15
| Date | Qty | Shipper | Country | Unloading Port | Vessel Name | Status |
| 19 July’15 | 55,000 | Various | South Africa | Mormugao | Alam Sayang | Berth |
| 07 July’15 | 173,100 | Kamachi Group | Krishnapatnam | Blue Hotse | Berth | |
| 13 July’15 | 161,900 | N/A | Kandla | C Oasis | Berth | |
| 20 July’15 | 30,000 | Kamachi Group | Krishnapatnam | MV JS Yukon | Anchorage | |
| 20 July’15 | 160,000 | JSW | Jaigarh | Frontier Kotobuki | Anchorage | |
| 26 July’15 | 57000 | SSIPL | N/A | Krishnapatnam | Ikian Siakap | Expected |
| Total | 637,000 |
Qty in MT
N/A: Not Available
Provisional data
Source: SteelMint Research, Customs
Chinese spot iron ore market remained almost stable this week. Prices for Fe 62% fines were seen hovering in the range of USD 51-52/MT, CFR China.
Iron Ore Lump Premium Moves Up
Spot lump premium, which moved up against last week to USD 0.1/dry MT unit. Last week the premium was USD 0.095/dry MT unit. This week Chinese government announced a number of measures to control pollution in the city of Tangshan resulting into shutting down of sintering & pelletization plants.
Despite lump being more environmental friendly, weak outlook of steel market in China overshadowed the recovery in lump premium. Steel mills in China have reduced output owing to falling steel prices. Thus, looking at weak demand for steel, mills do not expect any large increase in spot lump premium in the short run.
To find out more about the global iron ore price scenario and participate in invaluable industry discussions, join us at India’s largest business conference on Iron ore, Pellet & DRI to be held in Kolkata on 13 & 14 August 2015 at Hyatt Regency. The summit is expected to be attended by 250+ companies from across the world. Register Now
Get answers to
- What will be the global iron ore prices, demand & supply scenario?
- Will Iron ore prices in China revive soon?
- How will the new MMDR Bill (2015) change the dynamics of the Indian mining industry?
- Will the export duty cut on Iron ore to 10% benefit the Indian exporters?
- Will Indian steel makers continue to import in FY16?
- What is the potential for Indian Pellet in Iran?
- How will coal block & linkage auctions impact DRI industry in India?
- Will Indian DRI dependence increase on South African and Australian Coal?
Leave a Reply