Imported South African lump offers to India have increased in line with rising global iron ore prices and rise in lump premium.
Offers for imported South African Kumba lump are assessed at USD 62/MT, CFR Kandla for shipments to arrive in 1st week of Apr’16.
Global iron ore prices have moved up by USD 3/MT W-o-W on firm steel prices in China. Spot iron lump premium has also edged up further this week by 10% to USD 0.135/dry MT unit, CFR China.
However over increasing offers of imported lump, buying interest by Gujarat based steel mills has reduced considerably. Market participants highlighted that they are preferring using domestic material rather than going for imported ore.
Vessel freight rate from South Africa to west coast of India is USD 6.2/MT for panamax vessels and for capesize vessels it is USD 5.9/MT.
Expected iron ore import vessels in Kandla and Mundra ports
1. Import vessel “Diavolezza” carrying 85,000 MT South African iron ore is expected to reach at Kandla Port on 08 Mar’16
2. A market participant shared that another import vessel of 95,000 MT Assmang lump is expected to arrive at Mundra Port in Mar’16
Jindal SAW raise pellet offers
Bhilwara based pellet maker-Jindal SAW has also increased its pellet offers. Current offers for Fe 63% pellets is INR 4,850/MT and for Fe 65% pellets offers are around INR 5,150/MT (delivered Kandla, CST extra).
Previous offers were assessed at INR 4,500/MT for Fe 63% and for Fe 65% pellets offers were INR 4,800/MT (delivered Kandla, CST extra).
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