In order to compete with cheaper imported lump offers domestic pellet price in west coast of India have also noticed correction of INR 350/MT.
Jindal SAW, which operates a 1.2 MnT pa pellet plant at Bhilwara, Rajasthan has reduced its pellet prices. Fe 63% pellet prices are currently at INR 4,800/MT (delivered Kandla) which were earlier seen at INR 5,150/MT (delivered Kandla).
There is increase in inclination of Gujarat based steel mills towards imported ore. In order to compete with the imported ore, domestic pellet prices in west India have also witnessed correction.
A market participant shared that an importer who purchased around 60,000 MT Kumba lump (Fe 63%) is heard to offer material at USD 61/MT, CFR Kandla which was booked at around USD 65/MT. The vessel is expected to reach Kandla Port on 01 Nov’15.
Falling global iron ore prices coupled with sharp fall in spot lump premium have made imported iron ore lump offers to India cost-effective. Global iron ore fines (Fe 62%) prices have fallen below USD 50/MT, CFR China level and is currently at USD 49.5/MT, CFR China. Last week, spot iron lump premium noticed a sharp fall of 29% W-o-W to USD 0.075/dry MT unit.
South African Kumba lump (Fe 63%) offers are around USD 61-62/MT, CFR Kandla for shipments to arrive in Nov’15. It was heard from some market sources that Assmang imported lump (Fe 64%) offers have fallen to USD 60/MT for Dec’15 deliveries. Freight from South Africa to west coast of India remain stable and are as follows-Supramax-USD 10/MT, Panamax-USD 9/MT and Capesize-USD 8/MT.
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