Ready stock offers of imported lump have moved up marginally this week over increased buying from sponge iron manufacturers.
Offers for imported South African lump for ready stock are at USD 48-49/MT, CFR Kandla for panamax vessels. While offers for capesize vessels are at USD 46-47/MT, CFR Kandla.
However the offers remain unchanged for shipments to arrive towards end of Jan’16 or early Feb’16 at USD 46-48/MT, CFR Kandla.
“Scarcity in supply of sponge iron has temporarily lifted semi finished steel prices in Gujarat and Punjab. Following this, plants are trying to run their units at higher capacities to be benefited. This has given some push to the offers of ready stock of imported lump” – quoted a western India based market participant.
Another source from the industry shared that anticipation of imposition of Minimum Import Price (MIP) on steel imports to India has instigated strong sentiments in domestic steel market. Following which prices of semi finished and finished steel products have gone up. In Gujarat, prices of hot rolled coils have increased by INR 500/MT W-o-W. This has in turn lead to increased buying of imported lump stock lying at ports by Gujarat based sponge iron makers.
As per market sources no new iron ore import vessel was heard to be booked last week.
According to the customs data maintained with SteelMint there are only three Indian iron ore import vessels in pipeline as on date. An import vessel from South Africa comprising of 59,400 MT iron ore is expected to arrive at Jaigarh Port on 03 Jan’16.
Another vessel of JSW Steel comprising of 150,000 MT Brazillian fines is expected to arrive at Jaigarh Port on 20 Jan’16. Apart from this another import vessel of JSW Steel “Nautical Dream” carrying 170,000 MT Brazillian iron ore fines is expected to arrive at Jaigarh Port on 21st Jan’16
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