West India Steel Makers Iron Ore Procurement in Dec’16

Gujarat based steel makers are majorly sourcing iron ore from NMDC (Chhattisgarh), South Africa and domestic pellets from Jindal SAW.

Except Essar Steel which is seen procuring iron ore fines from Odisha, NMDC (Chhattisgarh) and pellets from Australia.

1. Iron ore sourcing from NMDC (Chhattisgarh) remains intact – Gujarat based steel makers – Gallant Metal and Welspun Steel continue to procure iron ore lump from NMDC (Chhattisgarh). On 21 Dec’16, vessel named “Jag Roopa” was at anchorage on Vizag port to move 45,000 MT lump to Kandla port.

2. Imported lump from South Africa – SteelMint reported earlier that some previously booked iron ore import vessels are likely to arrive at Kandla and Mormugao ports.

Import vessel named ‘Minoan Falcon’ carrying 81,220 MT iron ore lump from South Africa arrived at berth at Kandla port on 09 Dec’16. The vessel was jointly imported by Electrotherm India, Mono Steel, Varrsana Ispat and Welspun Steel.

Goa Sponge & Power imported a vessel named ‘Double Delight’ carrying 82,000 MT South African lump at Mormugao port on 23 Dec’16.

Shraddha Ispat imported a vessel of 90,000 MT iron ore lump at Mormugao port via vessel named ‘WelSuccess’ this month.

Presently, South African (Assmang, Fe 65%) lump prices are at USD 87-88/MT, CFR India. Owing to high global prices, importers have kept themselves away from booking new shipments.

3. Jindal SAW pellet offers remained stable this month – Domestic pellet offers in western India remained stable. Pellet (Fe 63%) offers of Jindal SAW are at INR 6,400/MT (delivered Kandla).

The steel maker also highlighted that they are also procuring iron ore fines (Fe 63%) in smaller quantities from Madhya Pradesh for their sinter plant. The landed cost to their plant is roughly around INR 3,200/MT.

Sourcing from Karnataka e-auctions remained thin. Gujarat based steel maker – Electrotherm India sourced 4,000 MT lump (Fe 64% from P. Balasubba Setty & Sons) at bid price of INR 2,900/MT (basic) through the e-auction held on 25 Nov’16. Since then, no further procurement from Karnataka e-auctions by the steel maker has been noticed.