Imported lump offers to Indian market remains stable this week. Offers for lump Fe 64% from Kumba region in South Africa are around USD 63/MT, CIF India for shipments to arrive in 1st week of Aug’15. Kumba lump is quite popular in Indian market and largely used by sponge iron manufacturers.
Global iron ore prices witnessed a roller coaster journey last week. Prices hit a 10-year low (USD 44.1/MT, CFR China) and then retreated back to USD 50/MT levels, as a result of which importers are preferring to wait for stability in global market.
Iron Ore Import Vessel Updates – July’15
| Date | Qty | Shipper | Country | Unloading Port | Vessel Name | Status |
| 07 Jul’15 | 173,100 | Kamachi Group | South Africa | Krishnapatnam | Blue Hotse | Berth |
| 13 Jul’15 | 161,900 | N/A | Kandla | C Oasis | Anchorage | |
| 15 Jul’15 | 45,500 | Kamachi Group | Krishnapatnam | MV JS Yukon | Expected | |
| 18 Jul’15 | 160,000 | JSW | Jaigarh | Frontier Kotobuki | Expected |
Qty in MT
N/A: Not Available
Provisional data
Source: SteelMint Reaserch, Customs
Looking at the current scenario, it seems that lump import will not be an encouraging option for east India based importers, as procuring iron ore from NMDC (Chhattisgarh) and Odisha will be comparitively more cost effective. Reduced lump prices and sufficient availability favour domestic market in eastern India.
Gujarat Based Steel Mills Prefer Essar’s Pellets
Steel mills in Gujarat seem to prefer pellets of Essar. Pellet prices for Fe 63/64 of Essar (Paradip) are at INR 5,100/MT delivered Kandla. Pellet plant of Jindal Saw is currently shut down for maintanance purpose.
Iron Ore Lump Premium Moves Up
Spot lump premium has moved up recently after witnessing continuous downtrend. Spot lump premium which was around USD 0.08/dry MT unit has moved up to USD 0.095/dry MT unit. Thus, imported lump to arrive in Sept’15 will be costlier owing to increased lump premium.
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- What will be the global iron ore prices, demand & supply scenario?
- Will Iron ore prices in China revive soon?
- How will the new MMDR Bill (2015) change the dynamics of the Indian mining industry?
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- Will Indian steel makers continue to import in FY16?
- What is the potential for Indian Pellet in Iran?
- How will coal block & linkage auctions impact DRI industry in India?
- Will Indian DRI dependence increase on South African and Australian Coal?
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