Chinese future Iron ore prices on index have declined sharply by 4% on concerns that stringent pollution norms may force steel mills to decrease production & Iron ore demand.
On Dalian Commodity Exchange (DCE), a cargo of Australian Pilbara fines of Fe 62% , for May delivery was sold at USD 55/MT, CIF China (down by about USD 3/MT). A Brazilian miner concluded a tender for Fe 65.44% fines at below USD 62/MT, CIF China.
Indian Steel Manufacturers to benefit
Falling global Iron ore prices will benefit Indian steelmakers, who are struggling with domestic supply, post mining restrictions.
“Cheaper Iron ore import will benefit Indian manufacturers. Current offers for South African Kumba lump (6-40 mm , Fe 64%) are in the range of around USD 78-82/MT, CIF Indian port for April shipments. Offers to Indian market may fall, if global prices continue to decline,” said a steelmaker based in Eastern region.
Indian Iron ore import is likely to hit 14.7 MnT in FY15, which is an all time high.
|
Indian Iron Ore Production, Export & Import |
|||
|
Year |
Production (MnT) |
Export (MnT) |
Import (MnT) |
| FY10 |
219 |
102 |
0.89 |
| FY11 |
207 |
46.9 |
1.86 |
| FY12 |
169 |
47.2 |
0.97 |
| FY13 |
136 |
18 |
3.05 |
| FY14 |
151 |
16 |
0.32 |
| FY15 |
115-120* |
4.5* |
14.7* |
*Provisional Data
Source: DGFT, Steel Ministry, SteelMint
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