Indian iron ore importers have turned silent over volatility in global iron ore prices and are waiting for stability before booking shipments.
Global iron ore prices depicted a volatile movement in this week. The week began with prices at USD 62.6/MT, CFR China for Australian fines (Fe 62%) and then fell to USD 60/MT, CFR China by mid-week. The week ended with a further decline of USD 4/MT and stood at USD 56/MT, CFR China.
A western India based market participant shared that currently offers for Apr’16 shipments are being made on index basis. Spot iron lump premium is at USD 0.15/dry MT unit, CFR China.
Prices of South African lump (Fe 64%) is at USD 63/MT, CFR China up by USD 9/MT M-o-M.
Jindal SAW raise pellet offers further by INR 500/MT
Bhilwara based pellet maker has raised domestic pellet prices further. Current offers for Fe 63 pellets are at INR 5,350/MT and those for Fe 65% pellets they are at INR 5,650/MT. Prices are on delivered Kandla basis, CST extra.
Previous offers of the pellet maker were INR 4,850/MT and INR 5,150/MT for Fe 63% & Fe 65% pellets respectively (delivered Kandla, & CST extra).
Few Gujarat based steel makers turn towards Karnataka e-auctions
Considering increase in global prices as well as domestic pellet offers some Gujarat based steel mills have resumed partcipation in Karnataka e-auctions.
For instance, Electrotherm has procured 8,000 MT lump (Fe 65/64) in e-auctions conducted in early Mar’16 at bid price of INR 2,065 /MT (weighted average basic price).
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