Indian steel makers turned active in imports post decline in global iron ore prices. Iron ore imports to India have moved up from 280,290 MT in Apr’17 to 390,920 MT in May’17.
Notably monthly average spot iron ore fines prices in China fell by USD 10/MT M-o-M in May’17, making imports cheaper.
Imported South African lump offers turned cost effective on falling global prices. Following this steel makers based in Gujarat, Goa and Tamil Nadu turned active in booking lump vessels from South Africa.
According to customs data maintained with SteelMint, there were three iron ore importers last month. JSW Steel continues to remain the largest importer at 168,300 MT. It is to be noted that the steel maker imported 168,300 MT Brazilian Carajas fines in May’17 at Jaigarh port for its Dolvi plant. The steel maker has been importing hedged cargoes under the long-term contract.
2nd largest shipper in May’17 was Essar Steel and it imported 112,620 MT iron ore from Brazil at Paradip port.
Third iron ore vessel imported last month was booked by Gujarat based steel mills namely – Welspun Steel, Mono Steel, Varrsana, Electrotherm and SAL Steel. They imported 110,000 MT South African lump at Kandla port.
More South African lump import vessels expected to arrive in Jun & Jul – According to market sources report to SteelMint, southern India based steel makers along with Kamachi has booked an Assmang lump import vessel of around 160,000 MT which is expected to arrive by Jun end or early Jul.
Apart from this, another vessel carrying nearly 165,000 MT Assmang lump has been booked by Gujarat based steel mills which is expected to arrive at Kandla port in Jun’17.
Also Goa based parties, Goa Sponge Power has recently imported a vessel of around 55,000 MT South African lump at Mormugao port. According to sources, the parties are in pipeline importing another cargo of around same quantity next month.
Leave a Reply