Prices of South African lump have noticed a weekly fall of USD 3-4/MT.
Imported iron ore offers for South African lump (Fe 64%) are around USD 74-75/MT, CIF India. The offers were around USD 77-78/MT, CIF India last week.
Imported iron ore offers to India have fallen this week over falling iron ore prices in global market. Spot iron ore fines prices have fallen by USD 8/MT W-o-W. Also, lump premium has fallen to USD 0.11/dry MT unit this week, making import of lump further cost effective.
South Africa Kumba lumps is quite popular in Indian market owing to high tumbler and Fe content. India imported 3,986,170 MT iron ore from South Africa in H1 2015.
Importers look less interested in booking shipments to arrive in Aug’15 owing to arrival of monsoons. Till date, there are merely two expected iron ore vessels for this month with quantity amounting to 333,100 MT.
Expected Iron Ore Vessels
|
Date |
Qty | Shipper | Country | Unloading Port | Vessel |
|
Name |
|||||
| 07 July’15 | 173,100 | Kamachi Group | South Africa | Krishnapatnam | Blue Hotse |
| 17 July’15 | 160,000 | JSW Steel | South Africa | Jaigarh | Frontier Kotobuki |
| Total | 333,100 |
Qty in MT
Provisional data
Source: SteelMint Stats, Customs
Steel mills in west India continue to prefer imported Lump
Steel mills in western India continue to prefer imported lump over domestic pellets. Looking at this, domestic pellet makers have reduced their offers. Prices have fallen to INR 5,500/MT delivered Kandla Port for Fe 63% pellets. Earlier, the prices were hovering in the range of INR 5,600-5,700/MT delivered Kandla Port.
A significant increase of 36% M-o-M has been observed in iron ore imports at Kandla port. 0.15 MnT iron ore has been imported last month against 0.11 MnT in May’15.
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