Amid volatility in global market, offers for imported ore to India are being done taking basis on monthly global iron ore index. Last week global iron ore prices began at level of USD 56/MT, CFR China for Fe 62% fines then fell to USD 52-53/MT by mid week and then again rebounded to USD 56/MT, CFR China by week end.
Sources shared that imported South African lump offers would roughly stand around USD 71/MT, CFR India for Apr’16 bookings.
Global iron ore prices for Fe 62% fines is at USD 56.3/MT, CFR China. Spot iron lump premium was assessed at USD 0.15/DMT, CFR China.
A west India based importer shared “INR has appreciated to 66.4 level against USD. This has given some relief to the importers. We are yet to finalize import shipments.
Towards the beginning of this month we had procured lump (Fe 65/64) at bid price of INR 2,060/MT (basic) from Karnataka e-auctions. It takes around four days for the material to reach from Karnataka to Gujarat. Road freight is around INR 1,800-2,000/MT”.
Jindal SAW pellet offers down by INR 100
Over less bookings after increased prices, the pellet maker has reduced offers by INR 100/MT. Current offers for Fe 63% pellets are at INR 5,250/MT (delivered Kandla, CST extra) and for Fe 65% pellets offers are at INR 5,550/MT (delivered Kandla, CST extra).
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