In the month of Aug’16, few southern India based iron ore importers turned to domestic market while others imported two vessels.
“Market is on uptrend and sponge iron prices have geared up rapidly in southern regions of India, however base prices in Karnataka e-auctions have remained unchanged throughout the month of Aug’16. It is anticipated that the market sentiments will further gain momentum in the upcoming festive season”, shared a Bellary based sponge iron manufacturer.
Two iron ore import vessels noticed by southern India based parties
The month of Aug’16 witnessed two iron ore import shipments out of which one was of JSW Steel and the other was brought jointly by Kamachi and Pulkit Steels.
JSW Steel imported 167,000 MT iron ore from Brazil at Krishnapatnam port. The vessel arrived at berth on 08 Aug’16.
The second iron ore import vessel at Krishnapatnam port was of Kamachi and Pulkit Steels. They jointly imported 85,000 MT iron ore from South Africa via vessel named “Giovanni Bottiglieri” which arrived at berth on 27 Aug’16.
Jeevaka and Akshara Industries opted for domestic iron ore sourcing
Instead of going for imported iron ore, Jeevaka and Akshara Industries opted for domestic ore. Jeevaka Industries participated for the first time in Karnataka e-auction held on 05 Aug’16 and procured 6,000 MT lump (Fe 62.2-63%) offered by a private miners. Lump (Fe 63%) was procured by it at bid price of INR 2,380/MT (basic).
On similar lines, Akshara Industries resumed participation in Karnataka e-auctions and procured 4,000 MT lump (Fe 61%) offered by NMDC Kumaraswamy mines at bid price of INR 1,794/MT (basic).
Base prices in Karnataka e-auctions remain stable in Aug’16
Throughout the month of Aug’16, base prices in Karnataka e-auctions remained unchanged. Base prices for NMDC Kumaraswamy mines are currently as follows: fines (Fe 59.2%) stood at INR 1,364/MT and lump (Fe 63.6%) stood at INR 1,847/MT. Private miners- Base prices of fines (Fe 65%) offered by Vysankere mines is seen at INR 2,025/MT and for lump (Fe 65%), it is seen at INR 2,125/MT.
Market participants shared that there were few inquiries from southern India parties for sourcing iron ore from NMDC (Chhattisgarh). However, it seems that they have diverted attention towards Karnataka e-auctions. KIOCL has also resumed purchases of iron ore fines from NMDC (Chhattisgarh) for its upcoming pellet export shipment.
Bellary pellet prices have also moved up by INR 100/MT M-o-M towards the end of Aug’16 amid increase in P-DRI prices. Presently prices of Fe 63% pellets are seen hovering in the range of INR 4,350-4,425/MT (basic).
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