Indian Steel Mills Raise Inquiries for Imported South African Lump

The seaborne lump market is softening, weighed down by the increased supply at Chinese ports therefore there are chances that Lump prices are likely to come down in a month’s time as iron ore index is expected to fall.

This will make imports cheaper, it is encouraging Gujarat (west coast based ) based steel mills to books vessels for iron ore lumps from South Africa. Fe 64% South African lumps were trading around USD 86/MT CFR, India. Now the offers have come down to USD 80-83/MT CFR, India for December loading.

Currently, spot lump premium is assessed at USD 0.2035/DMT, CFR China.

”Inquiries for imported lump have increased from Indian steel mills and it is expected that with anticipations of further price fall in a month’s time, lump offers may turn more lucrative”, said a South African lump trader.

As per the sources, a trader has booked a vessel for 70,000 MT Kumba lump at around USD 82/MT, CFR India by Gujarat based steel mills. And another vessel is in pipeline and is likely to be booked in next 3-4 days.

Few trade sources shared that Assmang lump availability is low; therefore people are going for Kumba lumps.

Jindal SAW pellet plant to go for a maintenence shutdown – Bhilwara (Rajasthan) based pellet maker – Jindal SAW is taking maintenance shutdown for about a month somewhere in Jan, which will affect pellet availability in West India so Gujarat based steel mills are actively looking for lumps.

Jindal SAW runs a pellet plant of 1.2 MnT pa capacity and is a key source of raw material for Gujarat based steel mills. Last week it’s offers were at INR 6,400/MT (delivered Kandla).

Iron ore imports to India up 27% M-o-M in Oct – India iron ore imports were recorded at 0.49 MnT in Oct’17 according to the customs data maintained by SteelMint. India’s imports were up 27% M-o-M against 0.39 MnT in Sept’17.

The imports were also up 1% Y-o-Y in Oct’17 against 0.48 MnT in Oct’16.

India’s major steel maker– JSW has imported 0.43 MnT iron ore from Brazil and South Africa in Oct’17 and turned out to be the largest importer. The steel maker did not import any cargo in Sept’17. Out of 0.43 MnT iron ore imported in Oct’17, 0.34 MnT was imported from Brazil at Jaigarh port. Remaining 0.1 MnT iron ore was imported from South Africa at Krishnapatnam port.