With no iron ore import vessels at Kandla & Mundra ports in Feb’17, Gujarat based steel makers relied completely on domestic iron ore sourcing.
Gujarat based steel makers are majorly sourcing iron ore from NMDC (Chhattisgarh), domestic pellets from Jindal SAW and Karnataka e-auctions. Except Essar Steel which is seen procuring iron ore fines from Odisha, NMDC (Chhattisgarh).
In Gujarat,steel (rebar) prices have not witnessed such a sharp increase as they have in eastern regions of country. In Gujarat prices for 12 mm rebar are presently seen at INR 28,000-29,000/MT (excluding ED, VAT/CST), up by INR 500/MT M-o-M whereas in Durgapur prices up by INR xx/MT W-o-W. “Though demand is dull but we expect prices to increase in the near term”, shared a Gujarat based steel maker.
1. Iron ore sourcing from NMDC (Chhattisgarh) remains intact – West India steel makers continue to procure iron ore from NMDC’s Bailadila mines in Chhattisgarh. Welspun Steel & Gallant Metal moved 50,500 MT iron ore from Vizag to Kandla port in 1st week of Feb’17 via vessel name “Jag Roopa”.
2. Jindal SAW raised pellet offers – Bhilwara (Rajasthan) based pellet maker – Jindal SAW has hiked pellet offers by INR 400/MT M-o-M. Offers for Fe 63% grade pellets which were earlier hovering at INR 6,200/MT (delivered Kandla) have now gone up to INR 6,600/MT (loaded to wagons).
3. Single lot sourced from Karnataka iron ore e-auctions – Gujarat based steel maker – Electrotherm India procured 4,000 MT lump (Fe 65%) from Vyasankere mines at INR 2,850/MT (basic) in the e-auction conducted on 13 Feb’17. Apart from this, no more procurement via e-auction has been seen so far.
Iron ore imports turn unviable over high global prices – Iron ore prices in China have recently hit 30 month high. Fe 62% fines index was recorded at USD 95/MT, CFR China on 21 Feb’17. Iron ore prices in China have notched up over increased domestic steel demand and higher steel prices.
Presently prices for South African lump (Fe 64/63%) are assessed at USD 100/MT, CFR China. At such high prices, west India based steel makers have kept themselves away from importing South African lump.
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