Higher global prices keep importers away from booking fresh import vessels. With one iron ore import vessel observed this month Southern India steel makers focus more on domestic iron ore/pellet sourcing in Nov’16.
Base prices in Karnataka e-auctions remained stable in Nov’16 – NMDC Kumaraswamy mines are currently as follows: fines (Fe 60%) stood at INR 1,678/MT and lump (Fe 63.4%) at INR 2,207/MT. Base prices for NMDC Donimalai, are as follows – lump (Fe 62.2%) – INR 2,286/MT and fines (Fe 60.2%) – INR 1,899/MT.
Base prices of iron ore offered by private miners were as follows: fines (Fe 60%) offered by SMIORE was at INR 1,760/MT and for lump (Fe 61.8%) it stood at INR 2,180/MT (basic). Vyasankere mines lump (Fe 65%) base prices remained unchanged M-o-M at INR 2,530/MT (basic).
NMDC’s sponge grade lump attracts sponge makers, fetches high bids – Southern India based sponge iron manufacturers continued procuring sponge grade lump in Karnataka e-auctions. Lump (10-20 mm, Fe 61.5%) offered by NMDC Kumarswamy mines received bids higher by INR 100 against base price of INR 1,770/MT (basic). Similarly lump (10-20 mm, Fe 61.9%) received bids in the range of INR 2,025-2,135/MT against base price of INR 1,805/MT (basic).
Southern India pellet makers hold offers – Sponge prices in southern India have declined amid limited trades post currency demonetization. Pellet makers reported about limited buying interest from sponge manufacturers and continue to hold offers at INR 5,200-5,350/MT (basic) for Fe 63% in Bellary.
NMDC conducted its 1st ever pellet e-auction this month with quantity of 12,000 MT. As per sources report base price was kept at INR 5,219/MT (basic) and bids received were INR 50-100 higher than base price. Entire quantity offered got sold.
Single iron ore import vessel arrived in Nov’16 – Kamachi group imported a vessel carrying 60,500 MT South African lump at Krishnapatnam port in 1st week of Nov’16. Another import vessel carrying similar quantity and material is expected to arrive at Krishnapatnam port on 02 Dec’16.
It seems that the vessels were booked month back when global iron ore prices were comparatively much less. Presently at such higher prices, importers have restricted booking shipments. Presently offers for imported South African lump are heard to be around USD 87-90/MT, CFR India.
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