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South African Iron Ore Lump Attract Indian Steel Makers

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Fines/Lumps

BigMint Bureau

706 Reads

29 May 2017, 13:19 IST

South African Iron Ore Lump Attract Indian Steel Makers

Declining global iron ore prices continues to attract Indian steel makers. South African lump is majorly used by steel mills based in Gujarat, Goa and Tamil Nadu. Steel mills located in Gujarat have turned active in booking iron ore import vessels post decline in global prices. Iron ore prices in China fell by USD 17/MT M-o-M in Apr'17, following which Gujarat based steel plants turned active in booking lump import vessel from South Africa.

According to customs data maintained with SteelMint, an import vessel name "Christina J" carrying 110,000 MT South African lump is expected to arrive at Kandla port on 31 May'17. The vessel has been booked by Welspun Steel, MonoSteel, Varssana Ispat, Electrotherm and SAL Steel. As per sources, another vessel of nearly 90,000 MT is expected to arrive in Jun'17.

Apart from these, Goa based steel units have also turned active in imports and vessel named 'Georgios P' carrying 55,000 MT South African lump is expected to arrive at Mormugao port this month. Market sources are anticipating another import vessel to arrive next month.

Imported South African lump offers to India have moved down further marginally by USD 2-3/MT. Presently prices for South African lump (Fe 64/63%) are assessed at USD 67-68/MT, CFR India.

Jindal SAW pellet offers remain stable - Bhilwara (Rajasthan) based pellet maker - Jindal SAW kept offers unchanged on monthly premises. Presently offers for Fe 63% grade pellets are at INR 5,400/MT (delivered Kandla). The pellet maker has also resumed souring iron ore from Odisha based mines.

Iron ore sourcing from NMDC (Chhattisgarh) - West India steel makers continue to procure iron ore from NMDC's Bailadila mines in Chhattisgarh. Welspun Steel & Gallant Metal loaded a vessel of 35,150 MT iron ore from Vizag port. The vessel arrived at Kandla port on 04 May'17.

Iron ore procurement from Karnataka e-auctions remains thin - So far in the e-auctions conducted this month (till 25^th) Electrotherm procured 8,000 MT lump (Fe 64-65%). Lump (Fe 65%) offered by Vyasankere mines received bid at INR 2,950/MT (basic).