Global iron ore prices are witnessing a downtrend and market sources are anticipating further decline in prices, which has given a reason to the importers to wait and watch before booking further shipments.
Offers for South African Kumba lump (Fe 64%) are at USD 68/MT, CFR Kandla for shipments to arrive in late Oct’15 and USD 67/MT, CFR Kandla for ready stock. Spot lump premium remained stable this week and is assessed at USD 0.127/ dry MT unit. Freight from South Africa to West Coast of India is USD 11/MT for Supramax vessels, USD 9/MT for panamax vessels and USD 8/MT for capesize vessels.
A vessel containing 90,700 MT Assmang lump (Fe 65%) has recently been sold to 3 parties namely Mono Steel, Gallant Metal and Varrsana Ispat. The deal was concluded at USD 67/MT, CFR Kandla.
Status of iron ore import vessels to India in Sept’15
|
|
Quantity | Shipper | Country | Unloading Port |
Vessel Name |
|
| 18 Sep’15 | 72,500 | KIOCL | Brazil | Mangalore | Navios Sagittarius | Berth |
| 27 Sept’15 | 155,800 | N/A | South Africa | Mundra | C Oasis | Berth |
| 28 Sept’15 | 90,700 | Mono Steel/Varrsana Ispat/ Gallant Metal | Kandla | Indus Victory | Berth | |
| Total | 319,000 |
Qty in MT
N/A: Not Available
Provisional data
Data updated till 29 Sep’15
Source: SteelMint Research, Customs
It seems that iron ore importers in India are waiting for further decline in iron ore prices in global market as no shipments are lined up. Spot iron ore fines (Fe 62%) prices today are at USD 54.7/MT, CFR China and are expected to fall below USD 40/MT in 1st half of 2016 owing to increasing iron ore supply in China, coupled with cut in Chinese steel output.
Importers in eastern and southern India are using raw material available in domestic market as viability of the latter is more. Thus, considering the present scenario, imported ore would be viable only for steel mills in Gujarat as the domestic material (pellets) available there are at INR 5,350/MT, delivered Kandla.
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