Steel mills based in India are importing more and more iron ore from countries like Australia and South Africa on unrealistic high prices in domestic market said industry sources.
Essar and JSW steel turns out to be the largest importer of iron ore, Essar has so far bought 750,000 mt of 63%-Fe and 65%-Fe lump in five 150,000 mt shipments from Kumba, and last received 400,000 mt of material 6-30 mm in diameter in September and October, reported Platts.
Another integrated steelmaker, JSW Steel, meanwhile, has become a regular buyer of South African iron ore, having bought nearly 1 million mt of material in the past year from Assmang.
“There were offers for South African ore at around $120-125/t CFR India, few weeks back, for Fe 64%. With iron ore prices high in domestic market, we are not surprised steel makers forced to import.” said a large iron ore trader based in Mumbai.
Big miners like Rio and BHP are also eyeing Indian market, he further added.
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