South African Kumba lump (Fe 64%) offers are assessed at USD 64-65/MT, CFR Kandla for shipments to arrive in late Oct’15 and USD 67-68/MT, CFR Kandla for ready stock. Offers for Assmang lump are around USD 65/MT, CFR Kandla for late Oct’15 shipments.
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.
Iron ore imports have picked up pace in Gujarat, where domestic material is comparatively somewhat costlier. On the other hand, imported offers have fallen due to declining iron ore prices in global market and increased stock of imported lump, lying at West Coast of India.
Seaborne lump premium falls further
Seaborne lump premium fell further to USD 0.12/dry MT unit from previous 0.127/dry MT unit amid oversupply of lump in the market. Steelmakers in China have restrained themselves from buying lump at higher rates and preferred to go for pellets.
Market sources are of view that spot lump premium might fall further by USD 0.02/dry MT, which might fetch buying interest.
Iron ore market in China is shut for a week till 07 Oct’15 on account of national holidays. Thus, trading activities remained muted.
Trade-wise:
- A vessel for 90,000 MT iron ore (fines and lump) was booked by 4 parties – Gallant Metal, Mono Steel, Welspun Steel and Varrsana Ispat for end Oct’15 loading
- Another vessel carrying 70,000 MT iron ore was heard to be booked on index basis
- Jindal Saw pellet (Fe 63%) offers are still at around INR 5,350/MT, delivered to Kandla. Prices might come down slightly by INR 150/MT, looking at declining offers of imported lump
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