Iron ore transport at OMC's Suakati
Gandhamardan mines has started today amid police protection. However, hundreds
of local people gathered at the area and opposed the move.
Ore transportation from the
mines has been stopped from March 22 due to the resistance and the district Administration
and Police authorities had decided to open it on 27 continued opposition from
local people lead by social and political leaders have forced the management to
The engagement of a contractor with equipment was
essential for smooth and steady operation of the mines. However, we are still
ready to absorb the 400 odd locals who were previously working as manual
labourers,” said Saswat Mishra, chairman-cum-managing director of OMC.
Reported by Tapan Moharana
- Iron Ore exports increase from Indian east coast port
- Paradip port almost operating at full capacity
- Differential freight charged by Indian railways on exports of iron ore still not suitable
With rising exports of iron ore from India, truck freight charges have also gone up in similar line. SteelMint assessed that charges have gone up by up to Rs 500/MT for Barbil (Odisha) to Paradip Port route, which is around 340 Kms. Current charges stand at around Rs 2,400-2,600/MT, which was at Rs 1,900-2,100/MT last week.
Trade sources highlight SteelMint that there is huge demand from exporters owing to weak Rupee and high iron ore prices in Chinese market.
“Most of the exporters, who have plot at Paradip port are using road as mode of transport over railways. Last week carrying one tonne of iron ore from Barbil region to Paradip it cost Rs 2,000/MT, which has been increased to Rs 2,600/MT now.
Where as transporting it through railways, it will cost an exporter around Rs 2,700-2,800/MT.” said an iron ore exporter based in eastern region of India.
Iron ore and pellet movement has become so active that, there are trucks lined up in several kilometers at Paradip port waiting to be unloaded.
” Falling Rupee and strong iron ore demand from China has prompted iron ore exporters to resume operations. Above that, with increased parity in pellet exports, almost every manufacturer in East India have shifted their focus to global market. This has further led to increase in demand and freight charges.” said another trader and exporter based in Bhubhaneshwar.
Japanese, South Korean, and Chinese HRC exporters are consistently increasing prices and increased price by USD 5-10/MT in a week, despite of slack HRC demand in market.
Exporters of above countries have raised prices over stable iron ore prices and are predicting market to pick up in September and have favorable domestic market conditions.
Stable Japanese domestic market is also favorable for Japanese sellers. Tokyo Steel is offering 2 mm HRC grade SPHC made to JIS G3131 at USD 631/MT (JPY 62/kg, $1 = JPY 98.33) EXW, excl. 5% VAT, which is unchanged from a week ago.
South Korean exporter announced to increase price of HR coils which continue trending upwards. 2 mm HRC grade SAE1006 have grown by USD 10/MT in a week to USD 580-590/MT FOB. Buyers' bids do not exceed $570-580/t FOB ($590-600/t CFR South East Asia). This level is based on offers of Indian material to South East Asia ($595-600/t CFR).
Chinese HRC price for same grade have also increased by USD 5-10/MT to USD 580-590/MT FOB due to higher cost of raw material and traders are increasing their stock which is expected to boost demand in September.
US coking coal market remain unchanged at the end of August. Many domestic industries are in requirement and looking forward to buy coal containing low volatile matter (CSR – below 60, volatile matter – 16-17%, moisture – 5-7%, ash – 7%; Sulfur – 0.82%), which is trading at around Ex-works basis USD 119-121/Short tonne. However high-quality coking coal (CSR – 70, volatile matter – 21%) is holding at USD 138-143/Short tonne.
Brazilian coking coal users remainsilent and are waiting for next quarter negotiations. However it has been noted that a Brazilian importer has floated tender last week for medium grade coal (CSR- 65-72, volatile mater-22%, FSI – 7-9). Whereas another importer from Brazil has also floated a tender to buy high quality coal with medium volatile matter (volatiles – 22%; FSI -7-9; CSR – 65-72). Supply of material is very limited in the US market so it is expected few companies will participate in what???
Europe, a major buyer of US coal, is also looking forward for further purchase but moving slow on booking of coal. European Importers are talking with US suppliers for October shipments and looking for good discounts from supplier. US coal market is going up but experts expect it to revert back soon. US high volatile coal (CSR- below 60, ash – 7-8%, Volatile Matter – 36-37%; Sulphur – 0.85%, Moisture – 3%;) is trading at USD 118-120/MT
A leading steel manufacturer from Turkey has also floated a tender to buy 0.6MnT Coking coal and it is expected that the competition will be in between US and Canadian suppliers.
Chinese plates market has declined at the end of August. Most of the China's mills have suspended exports in view of weak demand. South East Asian buyers rejected current offers and are looking for discounts, whereas most Chinese mills are opposing discount and withdrawing export offers. However Chinese exporters prefer to sell their material locally.
Owing to weak demand traderÃ¢â‚¬â„¢s stocks has been increased by 2.1% in a week, to 1.48 MT. It has been noted that stockist's domestic prices dropped RMB 5/MT in a week. Price offered to domestic buyers USD 645-655/MT for 8 mm and USD 600-610/MT for 20 mm material on ex-stocks basis including 17% VAT.
In spite of feeble demand of plate in China, suppliers are expecting prices to increase in starting of September, which may come down in middle of month anticipating that imported iron ore prices will fall.
Currently some Chinese leading plate manufactures are quoting plates on FOB basis in range of USD 550-565/MT
Pakistan Steel is Pakistan's largest industrial complex, comprising component units numbering more than 20 and supplier of high quality and cost effective steel products to the domestic market. It is inviting bid for Purchase of 10,000 MT of Manganese Ore on CFFO basis.
- Manganese Mn: 30% (Min)
- Silica (SiO2): 20% (Max)
- Alumina (Al2O3): 10% (Max)
- Moisture (ARB) Guaranteed 10% (Max)
- Size: (+) 0.15 mm to (-) 6 mm
Destination: Port Muhammad Bin Qasim, Pakistan Steel, Karachi, Pakistan.
Total Quantity: 10,000 MT (+/-10%)
- Due Date: 1430 hrs IST on 25 Sep, 2013
- Bid Opening Date: 1500 hrs IST on 25 Sep, 2013
“The Producers / Mine Owners / Authorized Traders by Mine Owners from Israel are not eligible to participate in the tender.”
Even after the Muslim holidays, Saudi Arabia and UAE industrial demand for HR coils and HR flats has still not recovered. Most of the trading companies are holding sufficient stocks and showing less interest on buying product from abroad. However it has been noted that imported steel prices has been increased mainly by China. Foreign suppliers are expecting market to improve in September.
On low demand in market UAE producer have cut down their prices by USD 10-25/MT.
It is noted that Saudi Arabia's leading steel manufacturer, Hadeed Saudi Iron & Steel Company (SABIC) is offering 2 mm HR coils at USD 628-640/MT for October delivery.
However Egyptian 2 mm HRC has been offered at USD 35-65/MT down to domestic material and so offered at USD 560-565/MT on CFR basis.
Same material in east of country domestic material is leading the market; also China HRC is available at almost same price. Whereas, Korean suppliers offering competitive prices. So South Korea has got good demand from UAE for good quality and some buyers traded at USD 585-595/MT CFR but it is expected that booking of material will slow down if there is any rise in import price.
In Raipur and Durgapur Wire Rod prices have gone up by Rs 2,300-2,800/MT in last one week. Wire rod (5.5mm) has limited production and is mainly supplied all over India for making Binding Wire, HB Wire, Nails, Bolts and other machinery items. Industry demand for Wire Rod is good from past few days due to hike in semi finished and finished steel price all over India. Positive sentiments and high raw material prices have resulted in good demand for Wire Rod.
According to a Wire Rod manufacturer based in Raipur- “Demand for wire is good due to shortage and positive sentiment in the steel market. Whereas raw material prices and Re-bar market is going up creating an impact in the market.”
Presently in Raipur, 5.5 MM is traded at Rs 40,100/MT and in Durgapur the same is offered at Rs 38,200/MT. All Prices include VAT.
Tata Metaliks Limited (TML), one of the largest foundry grade Pig iron manufacturer in India, has increased domestic prices by Rs 600/MT, w.e.f August 30.
Current offers stand at Rs 27,500/MT (ex works Kharagpur), which was quoted at Rs 26,900/MT previous to this.
The company is currently operating two blast furnaces in Kharagpur (West Bengal) manufacturing unit.
Its total installed capacity for Pig iron production is 350,000 tons per annum.
TML's cost of manufacturing Pig iron has gone up by about Rs 3,000/MT as the free fall in Indian currency (Rupee), which is at 66 level against US dollar, has made procurement of coal quite expensive.
The hike in prices is purely cost push and not due to any big improvement in demand from domestic buyers.
With no other option left, Indian Pig iron makers had to raise offers, which would had otherwise resulted in closure of the plant.
It was only a month back i.e. on August 1, that TML had lowered Pig iron offers due to availability of cheaper steel grade Pig iron, after maintaining them for a long time period of five months.
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Seaborne Iron ore price decreased by US $1 after remaining firm for last 3 days, Spot Iron ore price stands at $139 CFR China on Friday.
Demand for steel is not improving which affecting the sale of iron ore in China. Traders expecting this correction after increase of $2 on Monday, this price increase was not supported by the traders and steel industry and price corrected because of rare transaction.
Shanghai Steel rebar future week performance also affecting the market sentiments which trading at three week low on Thursday. This decline in prices may be because of war like situation in Syria.
Still mils and traders showing less interest for the purchase of Iron ore one reason could be the prices are too high other they have sufficient stocks for September.
China crude steel production is down by 1.2% in mid August due to less demand. Traders are waiting for demand to increase as forecasted for September.
Rupee downfall is encouraging miners to export Iron ore as demand is there from china. Government may also give some relief in export of Iron ore; this will help to reduce the current account deficit (CAD). India rupee improved by 66 Paisa stayed at 66.86 for 1 USD.
Iron ore miner Rio Tinto sold 165,000 tonnes of PB Fines at US $138.5. Iron ore trader at Shandong port sold Fe 62.5% Newman fines at RMB 955/tonne another trader sold Fe 57.5% yandi fines at RMB 840/tonne. Australian PB Fines grade 61.5 down by $1 at US $138.
Billet price unchanged stands at RMB 3150/tonne, after decrease of 10 RMB on Thursday.
US $1 = RMB 6.1790