Indian Iron Ore Importers Turn Active Post Price Hike in Domestic Market
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Indian iron ore importers have turned active post iron ore price hike in domestic market and higher steel prices.
Odisha based miners have raised iron ore prices up to INR 500/MT in Jan'18 after increasing prices twice by INR 400/MT in Dec'17. Odisha merchant miners have raised prices after Supreme Court ordered closure of five iron ore mines including Serajuddin Mines, MESCO etc.
NMDC has also hiked prices by 22% for January deliveries.
Rajasthan based pellet maker - Jindal SAW which is supplies pellets to Gujarat based steel mills is undergoing maintenance shutdown for around 40 days.
Recent hike in domestic iron ore prices, restricted raw material availability and high steel prices has made steel mills to turn to imports to make up for the restricted material availability in domestic market.
Indian steel mills have been inquiring actively for lump cargoes from South Africa.
"We have been receiving good inquiries for imported South African lump from west coast based and southern India based steel mills. Buyers are inquiring for both Assmang and Kumba lump. In Jan'18, two capesize vessels of Assmang lump are likely to arrive at Indian ports. Similarly in Feb'18, three shipments carrying Assmang lump are expected to reach at Indian ports. We are in discussions for March shipments now. The shipments booked on monthly average iron ore index basis along with prevailing lump premium", shared a supplier of Assmang lump.
However few market sources remained uncertain regarding availability of Kumba lumps owing to derailments and other such issues.
Iron Ore Import Vessel Line Up data
| Shipper | Vessel Name | Unloading Port | Quantity (in MT) | Status | Load Country |
| JSW Steel | Cape Brilliance | Jaigarh | 170000 | Berth | Brazil |
| JSW Steel | Hinrich Oldendorf | Jaigarh | 175000 | Berth | Australia |
| Swiss Singapore | KM Vancouver | Mormugao | 60500 | Berth | South Africa |
| JSW Steel | Lavinia Oldendrof | Krishnapatnam | 189200 | Berth | Australia |
| GALLANT Metal/Varsana/SAL Steel/Welspun Steel | Ikan Sembark | Kandla | 59680 | Berth | South Africa |
| JSW Steel | Houston | Jaigarh | 165000 | Expected | Brazil |
| JSW Steel | Navios Gem | Jaigarh | 170000 | Expected | Brazil |
| JSW Steel | Tenshu Maru | Jaigarh | 175000 | Expected | Brazil |
| Jindal SAW | Navios Fantastiks | Mundra | 165000 | Expected | South Africa |
| JSW STEEL | Ludolf Oldendrof | Krishnapatnam | 189200 | Expected | Australia |
Provisional data updated till 11 Jan'18
Source: SteelMint Stats, Customs
Spot lump premium is currently assessed around USD 0.095/DMT, CFR China. Assessment for iron ore lump (Fe 64%) grade offers stands around USD 90/MT, CFR India.
Rebar prices in Ahmedabad (west India) have moved up by INR 4,200/MT M-o-M and are hovering around INR 38,800-39,200/MT (ex-works) for 12mm rebar.
