Offers for imported South African lump remain mostly stable this week. However market participants are anticipating decrease in domestic pellet offers in western India.
Kumba lump offers are at USD 52/MT, CFR Kandla for Mar’16 end deliveries. And offers for Assmang lump were assessed at USD 55/MT, CFR Kandla for shipments to arrive in 1st week of Apr’16.
As per customs data maintained with SteelMint, there is only single iron ore import vessel expected to arrive in India by end of Feb’16 (till the data received on 18 Feb’16). Import vessel of Essar Steel named “Golden Magnum” carrying 175,000 MT iron ore is expected to arrive at Hazira Port on 23 Feb’16.
As per a market source based in west India no fresh vessels were heard to be booked this week.
Spot iron lump premium moves up
Global iron ore prices have showed some strength post Chinsese Lunar New Year holidays. Spot iron lump premium was observed at USD 0.1075/ dry MT unit, CFR China this week. Prior to the holidays lump premium was seen at USD 0.0925/dry MT unit, CFR China.
West India pellet prices may witness reduction-Sources
In last couple of weeks domestic pellet prices in west India had increased. Jindal SAW had raised pellet offers by INR 300/MT. Offers for pellets (Fe 63%) are at INR 4,500/MT (del. Kandla, CST extra) and for pellets (Fe 65%) are at INR 4,800/MT (del. Kandla, CST extra).
Market participants shared that landed cost of imported lump is comparatively much less than domestic pellet offers. And thus there are chances that the pellet maker may reduce offers in the near term.
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