Monthly Archives: May 2017

India: MOIL Raises Manganese Ore Prices By 10% for Remainder of Q1

Manganese Ore India (MOIL), the country’s largest and government owned manganese ore producer with an annual production of 11.5 lakh MT, has increased prices of various grades by around 10%.

Prices have increased on the backdrop of soaring manganese ore prices in the seaborne market. It is to be noted that manganese ore prices in global market have witnessed a steep increase due to rising demand from China and supply shortages.

MOIL has increased prices of various grades of manganese ore for remainder of first quarter effective from June 01, 2017. The prices have been increased by 10% on the existing prices, for all the grades.

Previously, MOIL had decreased its Manganese Ore prices in Apr’17, and kept prices unchanged in May’17.

Domestic and Imported Manganese Ore Prices
Grade  INR/MT
MOIL Mn 37.5%, Fe 7%                 11,714
MOIL Mn 44%, Fe 6%                 13,373
Lumps, Mn 38%, South Africa                 12,844
Lumps, Mn 44%, Fe 5%, Gabon                 17,017
Lumps, Mn 46%, Fe 5%, Australia                 18,239


Imported Manganese Ore Market Outlook

Imported Manganese ore prices have continued to firm up as market participants said demand was coming into the market.

Higher seaborne offers were finding less resistance on the back of higher domestic Manganese Alloy prices in China as
well as rising manganese ore prices at port.

Sources also reported that fewer cargoes were being offered from Gabon and South Africa due to supply issues.

Seaborne ore prices continued on an upward trend. Australian 46% lump was heard at around USD 6.1/dmtu, Gabon 44% ore at USD 5.95/dmtu and South African
36%-37% Carbonate ore at around USD 5.2/dmtu. All prices are for June shipment, CIF India.

 
 

Indian Pellet Manufacturers Raise Domestic Offers on Increased Exports

Higher realizations in exports has pushed up domestic pellet offers in eastern India. Odisha (Barbil) based two major pellet makers have raised offers.

Jindal Steel & Power (JSPL) – a major pellet maker as well as largest pellet exporter in FY17 has announced fresh offers for domestic market at around INR 3,900/MT (loaded to wagons). The company was not seen offering pellets in domestic market since past few weeks over less realizations in domestic market.

Another Barbil based pellet maker – Arya Iron & Steel is also heard to have raised offers by INR 150/MT, as per market sources report to SteelMint. The pellet manufacturer is now heard giving offers around INR 3,700/MT (loaded to wagons) against last offers at INR 3,550/MT (loaded to wagons).

It is to be noted that domestic pellet prices in eastern India have strengthened amid improved realizations in exports. Currently Indian pellet export offers are assessed at USD 85/MT, CFR China.

According to market sources report to SteelMint, around three pellet vessels have been booked by JSPL and few more east India based pellet manufacturers for export to China in last one week. And one more vessel is also in pipeline to be finalised. The vessels carrying nearly 50,000 MT pellets each have been booked for China for Jun’17 & Jul’17 delivery. The deals were concluded at around USD 87/MT, CFR China.

 

Oman becomes Largest Importer of Iranian DRI – Data

According customs data, Iran has exported nearly 175,000 MT DRI in FY17. Oman was the largest importer of Iran’s DRI as it procured nearly 60% material.

Iran is the world’s 2nd largest DRI producer & exporter in the world with an installed capacity of 25-27 MnT per annum and with an annual production of 14-15 MnT. The country’s DRI production significantly surged.

Availability of cheaper electricity and abundant supply of natural gas, drives the Country’s DRI production at low cost.

In FY17, Oman is the largest Importer of Iranian DRI by importing 100,000 MT followed Kuwait at 30,000 MT, India at 25,100 MT & Malaysia at 11,000 MT.

Highest amount of DRI imports was reported during Feb’17 at 41,900 MT followed Dec-16 (25,200 MT), May-16 (20,000 MT) & Jul-16 (18,400 MT).

IRAN 2

 

Indian Largest Iron Ore Miner NMDC, keeps Prices Unchanged for June

India’s largest iron ore producer – National Mineral Development Corporation (NMDC) has kept iron ore prices unchanged for Jun’17 deliveries. NMDC achieved around 20% yearly growth in its iron ore output last fiscal and produced 34.03 MnT iron ore.

Amid reduced offtake from Chhattisgarh based units in May’17 and decline in sponge prices, market sources were anticipating price cut, but the miner has announced a roll over in prices.

According to BSE filing, NMDC Baila lump & fines prices have remained unchanged for Jun’17. However the company officials could not be reached.Notably, since Mar’17, the miner has maintained iron ore prices at same levels.

NMDC (C.G.) iron ore prices for Jun’17

Size

Grade (Fe %) Prices

Change

Baila lump , 6-40 mm 65 2,425 =
Blue Dust/Fines 64 2,185 =

F.O.R prices in INR/MT
Royalty, DMF, NMET & other taxes extra
Source: NMDC BSE filing

C.G. based units resume iron ore procurement dropped significantly from NMDC in May’17 – Chhattisgarh based sponge units have sharply reduced iron ore procurement from NMDC Bailadila mines in May’17 compared to that in Apr’17. They sourced 19 rakes in Apr’17 which fell further to 11 rakes in May’17 (till 25th).

Procurement of iron ore from NMDC (C.G.) by outside state based units also fell in May’17 (till 25th) to 189 rakes against 276 rakes in Apr’17. JSW Steel has procured 38 rakes in May’17 (till 25th)  against 66 rakes in Apr’17. Vizag Steel also reduced iron ore sourcing from 163 rakes in Apr’17 to 116 rakes in May’17 (till 25th).

 NMDC

 

Indian Ferro Chrome Price Continues to Fall, Market Waiting for Floor

Indian High Carbon Ferro Chrome market was in a lull as China went on holiday, and nobody was inquiring for any material.

The domestic High Carbon (HC) Ferro Chrome market witnessed muted demand as end-users withdrew on shaky market sentiment. Current offer prices for HC Ferro Chrome (60% grade) is in the range of INR 65,000-70,000/MT (Ex-works Odisha). Indian producer sources said they were closely monitoring Chinese stainless steel-makers’ June purchase prices, as they are relying heavily on export sales. Currently, Indian producers are offering Ferro Chrome to China at 70 cents/lb, which translates to approximately INR 60,000/MT. SteelMint assessed that Ferro Chrome prices are under pressure, and some producers are likely to offer aggressively to clear their stocks.

Chinese Market

Export offers to China from Indian suppliers of HC Ferro Chrome (60% Cr) eased to 70 cents/lb CFR China, in line with the weakened domestic prices in China. There is downward pressure on the Chinese-origin HC Ferro Chrome, due to lower prices of Chrome Ore imported into China, and lack of demand for the alloy.

No deals could be confirmed for Indian origin HC Ferro Chrome, but a major Chinese stainless steel mill showed buying interest at 65 cents/lb. Chinese buyers are happy to wait on the sidelines, as the Chinese Stainless steel mills are expected to announce lower monthly Ferro Chrome tender prices for June, due to weakness in their own sector.

However, Indian Ferro Chrome prices are likely to find some support from the stronger South African Rand and the imminent onset of the country’s expensive winter power tariff, which could halt further South African Ferro chrome price drops.

Other Overseas Markets

Traders from other Asian countries are also not showing any buying interest, as the price is continuously getting lower, and they are expecting prices to fall further in June. The export offer price of HC Ferro Chrome to Korea and Japan was flat at 95 cents/lb CIF Korea and 96 cents/lb CIF Japan. There is an absence of any major inquiries, bids and deals.

OMC Auction

Odisha Mining Corporation (OMC) is set to Auction 44,640 MT Chrome Ore on 2 Jun’17. Market expectation is that the said Company will substantially reduce the base prices, from the previous round of auction – owing to weak demand for Ferro Chrome and sinking prices.

 

China: Wire Rod Export offers Firm despite Fall in Spot Prices

In spite of bullish trends amid price corrections in spot market, the Chinese wire rod export offers remain unaltered at USD 445-450/MT FoB main port, W-o-W.

Vietnam based buyers are heard to have book small quantity at USD 450/MT from North East China.

Moving to the spot market, it showed some correction in the prices as the futures drop further on opening of market after Dragon Boat Festival.

The domestic prices for 8 mm wire rod (Q235) are assessed at RMB 3,960/MT (USD 577); down by RMB 20/MT (USD 3) in Beijing, Northern Region and RMB 3,890/MT (USD 567); plummet by RMB 80/MT (USD 11) in Shanghai, Eastern Region.

CIS export offers showed some sign of improvement with a marginal increase of USD 5/MT, to fresh offers at USD 435-440/MT.

South East Asian Import offers strengthen by USD 10-15/MT, with current offers at USD 450-460/MT.

USA Import offers for wire rod are firm at USD 485-490/MT. Although, there are anticipation that prices to come down anytime soon. Hence, buyers are optimistic to place orders for June.

USA imports numbers are fading due to certain protective measures which have come into force to protect the domestic steel Industry.

Global Wire Rod Offers as on Week 23 (31 May)

Region

Offers in USD/MT

W-o-W

China export (FoB main port)

445-450

0

CIS export (FoB Black Sea)

430-440

+5

South East Asia (CFR)

435-440

+10

US Imports Offers

485-495

0

Prices in USD/MT, USD 1= RMB 6.86
Source: SteelMint Research

 

Korea: KOEN Invites Tender for Purchase of 1 MnT Sub Bituminous Coal

Korea South-East Power Company Limited (KOEN) has published a tender for purchase of 1 MnT sub bituminous coal in 2 lots of 625,000 MT and 375,000 MT.

Minimum quantity to be offered by bidder for lot1-125,000 and lot 2 -75,000 MT. The shipping will be from August’17 – September‘17and the offer price should be one single fixed price based on FOBT.

The offer validity is for the period 15 days from the date of tender closing. KOEN can request the bidder to extend validity period of bid, if necessary.

Due date

The last date for submitting tender document is 7 Jun’17 up to 11:00 hrs (Korean Standard Time).

For contact details view tender section:
http://www.steelmint.com/tender/purchase-of-bituminous-coal-7717

 

Global HRC Market Overview: Week 23

Chinese HRC Export Offers Stable Amid Festival Holidays

Chinese HRC export offers remained stable early this week on account of Dragon boat festival holidays. Currently HRC export offers are prevailing in the range of USD 440-450/MT, FoB China. Last week the offers were heard in the same range.

Meanwhile prices of HRC in domestic market are heard in the range of RMB 3,210-3,240/MT including VAT & other taxes.

Indian HRC export offers at around USD 460-470/MT, FoB

HRC export offers for July shipments of major Indian steel players like JSW and Essar Steel are hovering around USD 505/MT CFR Europe which is equivalent to USD 470/MT FoB India. However offers for Vietnam are at USD 480/MT CFR Vietnam,which is equivalent to USD 460-465/MT FoB India.

CIS-Countries HRC Market Stable Over Slack Demand

CIS countries HRC export offers continues to remain stable this week owing to dull and slow demand spread in the market.

Currently HRC export offers are prevailing in the range of USD 430-440/MT, FoB Black Sea. Some bookings have made in the range of USD 465/MT, CFR Egypt.

 

Japan: Iron Ore Imports Up 6% M-o-M in Apr’17

Japan is world’s second largest iron ore importer after China with imports figure of 130 MnT iron ore in CY16. The country imported 11.39 MnT iron ore in Apr’17 against 10.72 MnT in Mar’17. There was a increase of 6% in iron ore imports M-o-M.

Similarly on Y-o-Y basis, compared to the Apr’16 iron ore imports are up by 7%. In Apr’16, the country imported 10.65 MnT iron ore.

In the first four months of 2017, the country imported 41.8 MnT iron ore, down 2% as it was 42.6 MnT in the same period last year.

The non-agglomerated iron ore import in the month of Apr’17 was registered at 10.24 MnT against 9.62 MnT in Mar’17 up 6% M-o-M and 6% Y-o-Y against Apr’16. The agglomerated iron ore imports were registered at 1.15 MnT in Apr’17 compared to 1.1 MnT in Mar’17.

Japan imports-1


Country-wise Japan iron ore imports – 

Australian iron ore exports to Japan have witnessed a increment of 9% M-o-M to 6.96 MnT in Apr’17 which was 6.41 MnT in Mar’17. The nation exported around 6.48 MnT iron ore in Apr’16.

Brazil exported 2.83 MnT iron ore to Japan in Apr’17, compared to 2.94 MnT in Mar’17. In Apr’16, Brazil exported 2.68 MnT iron ore to Japan.

Canada stood as third largest iron ore exporter to Japan in Apr’17 and exported 0.71 MnT iron ore against 0.31 MnT in Mar’17.

Chile turned out to be the 4th largest iron ore exporter to Japan in Apr’17 at 0.34 MnT against 0.03 MnT in Mar’17.

Other major iron ore exporting countries to Japan in Apr’17 were South Africa, Peru , India and USA.

Country-wise Japan iron ore

 

Anglo American Completes Sale of Australian Coal Mine

The global mining major, Anglo American, has completed the sale of its 83.33 % stake in the mothballed Dartbrook coal mine, situated at the Hunter Valley in New South Wales of Australia, to Australian Pacific Coal Limited.

The sale followed the sale and purchase agreement between the two companies in Dec’15, when Anglo American agreed the deal at Australian $50 million. According to Anglo American, the sale was intended to restructure its portfolio.

The Dartbrook coal mine is an underground mine, which is under care and maintenance since 2006.