Improved availability of iron ore in domestic market, coupled with rising global iron ore prices, kept the interest of Indian iron ore importers low last month.
Iron ore imports to India have fallen by 27% from 891,245 MT in June’15 to 652,500 MT in July’15. Kamachi Group was the largest importer at 218,600 MT followed by JSW Steel at 160,000 MT. All shipments recorded this month were from South Africa.
Iron ore price cut in domestic market, ample availability in domestic market and fluctuating global iron ore prices kept interest of iron ore importers low. Spot iron ore prices exhibited a fluctuating pattern hitting a new 10-year low at USD 44.1/MT, CFR China and then rebounding to USD 53/MT, CFR China. Owing to above reasons majority of importers have shifted their interest towards domestic market.
Iron Ore Imports to India in July’15
|
|
Qty | Shipper | Country | Unloading Port |
|
| 07 July’15 | 173,100 | Kamachi Group | South Africa | Krishnapatnam | Blue Hotse |
| 13 July’15 | 161,900 | N/A | Kandla | C Oasis | |
| 19 July’15 | 55,000 | Various | Mormugao | Alam Sayang | |
| 20 July’15 | 160,000 | JSW | Jaigarh | Frontier Kotobuki | |
| 22 July’15 | 45,500 | Kamachi Group | Krishnapatnam | MV JS Yukon | |
| 26 July’15 | 57,000 | SSIPL | Krishnapatnam | Ikian Siakap | |
| Total | 652,500 |
Qty in MT
N/A: Not Available
Provisional data
Source: SteelMint Research, Customs
JSW Steel, a consistent importer of iron ore in last fiscal has significantly increased its purchases from NMDC (C.G.), and has reduced its imports in last couple of months. The steelmaker imported 0.35 MnT in May’15, 0.16 MnT in June’15 and 0.16 MnT in July’15. The company plans to reduce imports further in the running quarter hoping for improved availability of iron ore in domestic market.
Pellet Imports to India remain Nil last Month
Pellet imports which were recorded at 0.05 MnT in June’15. While last month it remained nil. Pellet imports does not looks a lucrative option as of now. Prices of Brazillian pellets (Fe 66%) is around USD 88/MT, CFR China which is high enough in comparison to the pellet prices prevailing in Indian pellet market. Whereas, in domestic market current offers for Fe 63% pellets are in the range of INR 4,200-4,900/MT (ex-plant).
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