Amid steep fall in global iron ore prices, offers for imported South African lump have also fallen by USD 8-9/MT W-o-W.
Global iron ore prices have fallen drastically this week. Following which, imported iron ore offers to India have also declined drastically. Spot iron ore prices touched a new 10-year low on 08 July’15 and stood at USD 44.1/MT, CFR China for Fe 62% fines.
Imported iron ore offers for South African Kumba lump are around USD 65-67/MT, CIF India for shipments to arrive in end of July’15. The offers were around USD 74-75/MT, CIF India last week. Vessel freight from South Africa to India is around USD 10/MT for Panamax vessels.
Lump premium has also witnessed a major fall. Lump premium has fallen by 31% since June’15 and is around USD 0.11/dry MT unit. It was at USD 0.18 dry MT unit in week 24. Also, Indian currency has appreciated against USD and is currently at 63.4 levels. Thus making imports further cost effective against last week.
Trade wise:
- Kamachi Group imported 0.17 MnT iron ore from South Africa at Krishnapatnam Port
- JSW Steel to import 0.16 MnT iron ore from South Africa at Jaigarh Port. The vessel is expected to arrive on 18 July’15
Recently, Odisha govt. approved lease extensions of 7 mines following which iron ore supply is likely to increase. This along with falling global iron ore prices, might build pressure on iron ore prices in domestic market as well.
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