Imported Lump Offers to India Up In Line with Global Iron Ore Prices

Offers for imported South African lump to India up by USD 4/MT W-o-W.

Offers for imported lump from South Africa have moved up in line with increasing global iron ore prices. Current offers are at USD 56/MT, CFR Kandla for end of Feb’16 loadings. Thus, offers have moved up by around USD 4/MT against last week.

Iron ore prices in China have moved up by USD 3/MT W-o-W over restocking by steel mils ahead Chinese Lunar New Year holidays and lesser export shipments from Australia over cyclone concerns.

Spot iron lump premium has remained unchanged at USD 0.085/dry MT unit, CFR China as assessed on 02 Feb’16.

Vessel freight from South Africa to west coast of India is around USD 6/MT for panamax vessels and USD 8/MT for supramax vessels.

As per customs data maintained with SteelMint, till date there are three iron ore import vessels to India for this month. Out of this, two vessels are being imported by southern India based steel makers. The third iron ore import vessel is expected to arrive at Kandla Port on 09 Feb’16.

As per sources, there is one more import vessel to arrive at Kandla Port towards the end of Feb’16 or early Mar’16.

Details of expected iron ore import vessels to India in Feb’16

Qty in MT
Provisional data
N/A: Not Available
Updated till data received on 03 Feb’16
Source: SteelMint Stats, Customs

Domestic pellet offers in west India also move up:  Jindal SAW has further raised its pellet offers. Currently offers for Fe 63% pellets are at INR 4,350/MT (del Kandla, CST extra) for Fe 63% pellets and for Fe 65% pellets offers are around INR 4,650/MT (del Kandla, CST extra). As per market sources with imported lump becoming dearer there are chances that domestic pellet offers may increase further.