Amid volatility in iron ore prices in the global market, Indian iron ore importers are hesitant and turned silent as of now. Few steel makers in southern regions of India have kept themselves away from importing iron ore.
Current offers for imported iron ore lump are hovering in the range of USD 65-66/MT, CFR India. According to southern India-based market sources “Currently, only two iron ore import vessels are expected to reach to Indian Port by the end of June’16. He also added, the material to be bought consist of Kumba lump and another of Assmang lump”
It been a month, no iron ore import vessels had been imported by southern India-based steel makers in May’16 due to inconsistency in the global market. In May’16, few importers were utilizing the previously imported material in Apr’16 or May’16 starting. Importers were resistant to book any vessel and were more inclined towards domestic ore.
Southern based steelmakers, who contribute majority of share in Indian iron ore imports are preferring domestic lump or pellet over imported ore. They have aggressively increased buying from Karnataka iron ore e-auctions since the purchase of imported ore have become unviable.
Leave a Reply