Monthly Archives: November 2017

Daily Update: Indian Sponge & Billet Market

Domestic Semi-finished offers rise further on strong demand and rise in raw material prices, Sponge iron offers increase by INR 200-400/MT & Billet by INR 200-750/MT, D-o-D.

Today, SteelMint’s price assessments for induction furnaces billet size 125×125 mm are reported at INR 27,500-30,500/MT (USD 426-473) ex-plant.

Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 17,800-19,600/MT (USD 276-304); prices are ex-plant & excluding GST.

Today (Thursday, November 30, 2017) INR to USD exchange rate stood at INR 64.47 & BSE Sensex closed at 33,149 (-453).

Key Market Updates:

1. Mahanadi Coalfields Ltd (MCL) had decided to cut down coal supplies to the Non-power sector for the third successive month in Dec’17, in order to augment coal supply to the power stations.

2. Sponge iron prices in Raipur rise further to hit 3 years high owing to recent hike in iron ore prices by some major miners.

3. Raipur, Central India based Integrated plants have increase offers by INR 300/MT D-o-D, offering Sponge P-DRI at INR 18,400-18,600/MT ex-plant. Sponge DR-CLO grade offers also up by INR 200-300/MT to INR 20,100-20,300/MT. Both prices ex-plant & excluding GST.

4. In West Bengal – Durgapur, big manufacturers have increased sponge offers by INR 200/MT D-o-D; P-DRI at INR 18,000/MT & C-DRI at INR 19,000/MT ex-plant

5. Odisha based medium size sponge manufacturers reported increase offers by INR 300-400/MT; FeM 80 C-DRI (70:30 mix material) at INR 18,400-18,500/MT ex-plant & excluding GST.

6. BMM Ispat in South India has kept offers unaltered, offering FeM 80 P-DRI lumps at INR 17,100-17,300/MT ex-Bellary, Karnataka.

7. ILC Iron & Steel, a 350 TPD sponge iron manufacturer from Karnataka offered FeM 80 mix material sponge at INR 17,400-17,500/MT ex-plant, an official reported

8. Hyderabad based furnace owners increased Billet prices by INR 700-800/MT to INR 29,500-30,000/MT. Manufacturers reported healthy deals at INR 29,500/MT; ex-plant & excluding GST

9. Melting scrap offers in Western India- Maharashtra & Gujarat rise by INR 500-1,000/MT (W-o-W) owing to rise in Sponge & billet prices.

10. Indian pig iron prices find support on rising raw material and steel prices globally. Some manufacturers in East India have raised offers by INR 500/MT (USD 8).

11. Medium mills across India today raise rebar prices by INR 200-500/MT on strong demand and hike in billet offers. Light structure offers also increased marginally by INR 100-200/MT in Raipur & Mumbai.

Reference prices as on 30th November 2017

Particular/Delivery Size, Grade, Origin Prices Min Max Change 1W 1M
C-DRI Ex-Durgapur  Mix, FeM 78%, +/-1 19,000 18,900 19,100 + 200 18,100 18,200
Ex-Rourkela  Mix, FeM 80%, +/-1 18,400 18,300 18,500 + 300 17,500 17,100
Ex-Raipur  Mix, FeM 80%, +/-1 19,600 19,500 19,700 + 100 18,500 18,100
Ex-Bellary  Lumps, FeM 80%, +/-1 17,800 17,700 17,900 + 300 16,900 17,300
Ex-Hyderabad  Lumps, FeM 80%, +/-1 18,100 18,000 18,200 + 400 17,300 17,700
P-DRI Ex-Durgapur  Lumps, FeM 78%, +/-1 18,000 17,900 18,100 + 200 17,000 17,400
Ex-Raipur  Lumps, FeM 80%, +/-1 18,500 18,400 18,600 + 300 17,350 16,700
Ex-Bellary  Lumps, FeM 80%, +/-1 17,400 17,300 17,500 + 200 16,600 17,100
Ex-Hyderabad  Lumps, FeM 80%, +/-1 18,100 18,000 18,200 + 400 17,300 17,600
Ingot Ex-Mandi Gobindgarh  3.5 x 4.5 Inch, IS 2830 31,100 31,000 31,200 + 600 30,100 29,500
Ex-Durgapur  3.5 x 4.5 Inch, IS 2830 28,600 28,500 28,700 + 300 27,500 27,000
Ex-Rourkela  3.5 x 4.5 Inch, IS 2830 27,100 27,000 27,100 + 500 26,100 26,100
Ex-Raipur  3.5 x 4.5 Inch, IS 2830 27,600 27,500 27,700 + 400 26,550 26,450
Ex-Mumbai  3.5 x 4.5 Inch, IS 2830 29,900 29,800 30,000 + 300 28,400 27,250
Ex-Chennai  3.5 x 4.5 Inch, IS 2830 28,500 28,400 28,600   0 27,700 27,250
Ex-Hyderabad  3.5 x 4.5 Inch, IS 2830 29,750 29,500 30,000 + 750 28,000 28,000
Billet Ex-Mandi Gobindgarh  125×125 mm, IS 2831 31,600 31,500 31,700 + 600 30,550 30,000
Ex-Durgapur  125×125 mm, IS 2831 29,000 29,000 29,200 + 300 27,800 27,400
Ex-Rourkela  125×125 mm, IS 2831 27,500 27,400 27,600 + 400 26,500 26,500
Ex-Raipur  125×125 mm, IS 2831 28,300 28,200 28,400 + 450 27,000 27,000
Ex-Mumbai  125×125 mm, IS 2831 30,100 30,000 30,200 + 300 28,600 27,600
Ex-Chennai  125×125 mm, IS 2831 29,000 28,900 29,100   0 28,200 27,750
Ex-Hyderabad  125×125 mm, IS 2831 29,750 29,500 30,000 + 750 28,000 28,000
TMT Ex-Delhi/NCR  12MM 34,000 33,800 34,200   0 33,300 33,200
Ex-Durgapur  12MM 31,500 31,300 31,800 + 200 30,600 30,500
Ex-Raipur  12MM 30,900 30,700 31,100 + 200 29,800 29,800
Ex-Mumbai  12MM 33,100 32,700 33,200 + 200 31,600 31,000
Ex-Chennai  12MM 32,600 32,400 33,000 + 300 31,700 31,700
Ex-Hyderabad  12MM 32,750 32,500 33,000 + 750 31,000 30,800

Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research

 

Factors Supporting Indian Pig Iron Prices

Indian pig iron prices find support on rising raw material and steel prices in domestic and global market. Some manufacturers have raised their offers by around INR 500/MT (USD 8) and some are yet to declare.

Steel grade Pig iron offers are hovering at INR 24,200/MT (USD 373) ex-Durgapur, which is at the moment one of the largest spot market.

Factors supporting Indian pig iron prices

1. Indian billet prices have increased by upto INR 1,500/MT (USD 23) in last one week on export orders and low inventories

2. Indian major iron ore miners have increased prices by INR 200-400/MT (USD 3-6)

3. Global coking coal prices increase by USD 25-30/MT in last one month owing to congestion at one of the major port in Australia. Current offers for premium HCC from Australia at USD 206-208/MT FOB Australia.

4. Melting scrap prices in global market increased by USD 10-15/MT in last one month

5. Indian pig iron exporters have become active on rising scrap prices. Two bulk deals have been reported from India in November at around USD 335-340/MT FOB India

Trade Wise

1. The stockiest in Raipur – Central India are offering Pig iron at INR 25,000-25,200/MT and by the producer the offers are heard at INR 25,250-25,500/MT ex-plant & excluding GST

2. Electro Steels (Bokaro) is offering steel grade material at INR 24,000-24,100/MT ex-plant and has concluded few deals to Durgapur at INR INR 24,100-24,300/MT FOR

3. Bhushan Power & Steel (Jharsguda,Odisha) is offering Pig iron at INR 24,200-24,300/MT ex-plant

4. Neo Metaliks in Durgapur – West Bengal offers steel grade pig iron at INR 24,200/MT against last week offers of around INR 23,800-24,000/MT

5. Jindal Steel has offered Pooled iron at INR 22,000/MT & Ferroshots at INR 23,000/MT (ex-Angul, Odisha)

6. JSW Steel offers steel grade pig iron from Its Dolvi, Maharashtra plant at INR 24,000/MT ex-plant

7. Trade participants in North region – Ludhiana indicates further increase in prices in near days as supply of material are expected to limited with closure of NINL blast furnace. The latest offers are reported for foundry grade at around INR 28,500/MT & steel grade at INR 26,500/MT FOR, up by 500-700/MT, W-o-W

8. SAIL (Burnpur) raise prices by INR 500/t to INR 23,500/MT, soures report

9. Indian pig iron exports stood at 0.5 MnT during Jan-Oct’17. MMTC which exports on behalf of NINL remained the largest exporter at 0.22 MnT followed by Vedanta at 0.15 MnT and RINL at 0.07 MnT.

10. SteelMint’s Indian Pig iron export price assessment stood at USD 335-340, FoB. Meanwhile, the global offers hovering at USD 340/MT FoB Brazil & USD 335-340/MT, FoB Black Sea.

11. MMTC, export tender of 5,000 MT non-alloy Pig Iron on behalf of Neelachal Ispat Nigam Limited (NINL) is expiring on 05 Dec’17.

12. Vizag Steel’s export tender of 25,000 MT Pig iron which got expired on 21 Nov’17 heard to have concludes at USD 337-338/MT FoB India. Prior to this, Western India based an private pig iron manufacturer has concludes export deal at USD 340/MT, FoB.

Reference Prices as on 30th Nov 2017

Products/Delivery Currency Prices 1 Week Ago 1 Month Ago
Pig iron, Durgapur Prices in INR/MT 24,100-24,200 23,300 23,500
Billet, Ex-Mumbai Prices in INR/MT 30,100 28,600 27,600
HMS Scrap, Ex-Mumbai Prices in INR/MT 22,000 21,100 21,000
Iron ore Fines (Fe 64%), NMDC, ex-Chhattisgarh Prices in INR/MT 2,260* 2,060*
Coking coal, FoB Australia Prices in USD/MT 206-208 192 180
Pig Iron basic grade, FoB India Prices in USD/MT 335-340 330 335
Shreded Scrap, CFR India Prices in USD/MT 340-345 340 330

Basic prices
Prices Excluding Royalty, DMF & NMET. GST @ 5% extra*
Source: SteelMint Research

 

India: Domestic Pellet Offers Rise in Line with Hike In Iron Ore Prices

After recent hike in iron ore prices, pellet manufacturers in central and eastern India have raised their pellet offers.

Odisha based major merchant miners namely – Rungta Mines, KJS Ahluwalia and Kaypee Enterprises have raised iron ore prices from yesterday. The miner has raised fines prices by INR 200/MT. Iron ore prices in Odisha have moved up due to the rake availability issues, hike in P-DRI prices and less availability of iron ore.

The scarcity of iron ore has led to people shifting towards pellet and consecutively is resulting in increased demand for pellets.

Following this, Durgapur based pellet offers are now assessed at INR 6,000-6,100/MT which were at INR 5,800-5,900/MT towards the beginning of this week.

P-DRI prices continues to remain on the uptrend. In Durgapur (P-DRI, 78 FeM) prices increased by INR 1000/MT in a week’s time and is presently assessed at INR 18,000/MT (delivered).

Central India based pellet makers raise offers after NMDC price hike –

India’s largest Iron ore miner NMDC has increased iron prices by 13% for Dec’17 deliveries. The miner has raised fines prices by INR 200/MT.

Following this Raipur based major pellet makers have raised offers by INR 200/MT to INR 6,000/MT (basic). Towards the beginning of the week, the offers were hovering around INR 5,800/MT (basic).

P-DRI prices increased further in Raipur. In Raipur (P-DRI, 80 FeM) prices increased by INR 1100/MT in a week’s time and is presently assessed at INR 18,500/MT (ex-plant).

 

India: Raipur Sponge Iron Prices Hit 3-Yrs High

Sponge iron prices in Raipur rise further to hit 3 years high owing to recent hike in iron ore prices by some major miners.

SteelMint’s price assessment for pellet based sponge iron (P-DRI) is recorded at INR INR 18,500-18,700/MT (USD 285-288). Sponge made from NMDC’s high grade iron ore lumps (DR-CLO) are hovering at INR 20,000-20,200/MT (USD 310-313). This level was last seen during December 2014. Both prices are on ex-plant basis & excluding 18% GST.

Raipur is a key market for sponge iron in India and has an annual production capacity of around 9 MnT which is about 20% of India’s total capacity. Raipur is also on of the largest producer of merchant sponge iron in the country.

Key factors driving prices:

1. Sponge iron production has dropped owing to logistical issues. SteelMint learned that supply of railway wagon has been very poor in last few weeks, which has resulted a sharp fall in dispatch of iron ore and coal.

2. Recently, India’s largest iron ore producer – National Mineral Development Corporation (NMDC, Chhattisgarh) has increased iron ore prices up to 13% (INR 300) for Dec’17 deliveries. Also, Odisha based major merchant miners have increased prices by INR 200-400/MT.

3. Strong demand from other states owing to higher prices of key substitute products like – Scrap & Pig iron, which increased by INR 500-1,000/MT (USD 23-32) in last couple weeks.

PDRI RPR

 

China: Met Coke Exports Sink 26% in Oct’17 M-o-M

Met Coke exports from China in Oct’17 were lower by around 26.44% in comparison with the exports during the previous month, an analysis of the data released by China Customs shows.

During Oct’17, around 0.34 MnT of Met Coke was exported from China and that was lower than the exports of around 0.46 MnT in Sep’17.

Figures in MnT
COUNTRY Oct’17 Sep’17 Change(%)
India 0.12 0.14 -12.34
Vietnam 0.06 0.05 7.03
Indonesia 0.05 0.05 -0.88
Japan 0.04 0.05 -19.12
Malaysia 0.02 0.03 -35.27
China Taiwan 0.01 0.03 -62.45
South Korea 0.01 0.03 -62.11
South Africa 0.01 0.02 -66.38
Australia 0.01 0.02 -68.35
Iran 0.01 0.02 -68.42
Kazakhstan 0.00 0.01 -45.18
UAE 0.00 0.01 -81.01
Total 0.34 0.46 -26.44

Source: CoalMint Research

The reason behind the shrinkage in the exports was the downturn in the Met Coke offers due to the then sinking Coking Coal prices. Importers in the major procuring nations adopted a wait-and-watch stance as a result.
MetcokeChinaExpt

Source: CoalMint Research

A break-up of the exports during the month under review shows that those were the highest to India; followed by Vietnam.

During the Jan-Oct’17 period, around 6.08 MnT of Met Coke was exported from China.

 

Bulk Freight Rates Go Higher on Increasing Coal, Iron Ore Shipments to China

The Bulk Freight Rates have shown a rising trend not because the demand for cargo vessels is strengthening from Indian importers; but due to a slew of parallel forces emanating from China—those are accounting for the strengthening demand for cargo vessels; thus pulling up the freight rates.

Imports of Thermal Coal and Iron Ore have escalated in China as the winter season is traditionally a stocking season for the end-users in respect to the commodities. In that country, Thermal Coal imports are more prominent from Indonesia and Australia, primarily due to the similarities in the calorific values of the coal in the two geographies. While, Panamax vessels dominated the coal imports from Indonesia, it was Supramax vessels for the imports from Australia. At the same time, the re-opening of the coal handling ports in South China has triggered mass vessel influx, accounting for the incremental demand for cargo vessels.

The Baltic Dry Index has risen substantially as a result of the strong demand for cargo vessels. On 29 Nov’17, the index was reported at 1,536 points, which is remarkably higher than the 1,458 points reported on 24Nov’17.

The following are the ruling freight rates in respect to route and vessel type:

SUPRAMAX
Freight in USD/MT
LOAD PORT COUNTRY DISCHARGE PORT COUNTRY 24Nov’17 LAST WEEK LAST MONTH STATUS
Taboneo Indonesia Vizag India 9.51 8.65 10.25 Up
Taboneo Navlakhi 11.24 10.22 12.08 Up
Taboneo Fangcheng China 9.13 8.35 9.87 Up
Taboneo Rizhao 9.94 9.12 10.7 Up
Richards Bay South Africa Mundra India 13.6 13.07 14.63 Up
Richards Bay Paradip 13.64 13.05 14.8 Up
Hay Point Australia Huangpu(12.3m) China 14.29 13.32 14.58 Up
Hay Point Vizag India 17.7 16.35 18.34 Up
New Port News USA Vizag 36.27 35.28 38.05 Up
Houston Vizag 33.95 33.81 35.35 Up
Goa India Qingdao China 11.62 10.94 12.11 Up
Paradip Qingdao 8.81 8.47 9.89 Up
Bunati Indonesia Campha (12.3) Vietnam 10.16 8.6 12.24 Up
Richards Bay South Africa Campha (12.3) 20.4 19.31 22.81 Up
Haypoint Australia Campha (12.3) 16.48 15.04 18.02 Up
Gladstone Campha (12.3) 16.81 15.34 18.39 Up
Port Kembla Campha (12.3) 19.05 17.4 20.77 Up
Teluk Rubiah Malaysia Campha (12.3) 9.83 8.55 10.97 Up
Vostochy (12.2M) Russia Paradip India 12.27 11.44 13.4 Up
Vostochy (12.2M) Krishnapatnam 12.1 11.36 13.12 Up
Vostochy (12.2M) Hazira 14.89 13.94 16.19 Up
Vostochy (12.2M) Jaigarh (13m) 13.16 12.37 14.25 Up
Vanino Paradip 12.16 11.23 13.24 Up
Vanino Krishnapatnam 11.75 10.92 12.57 Up
Vanino Hazira 14.39 13.33 15.45 Up
Vanino Jaigarh (13m) 12.78 11.88 13.66 Up
Vanino Tuticorin (12.8M) 11.78 10.91 12.63 Up
Nakhodka (9.35M) Paradip 16.99 15.91 18.27 Up
Nakhodka (9.35M) Krishnapatnam 16.55 15.61 17.67 Up
Nakhodka (9.35M) Hazira 21.74 20.35 23.38 Up
Nakhodka (9.35M) Jaigarh (13m) 19.16 18.02 20.51 Up
Richards Bay South Africa ECI 15.72 15.09 16.92 Up
Richards Bay ECI 17.41 16.7 18.78 Up

 

PANAMAX
Freight in USD/MT
LOAD PORT COUNTRY DISCHARGE PORT COUNTRY 24Nov’17 LAST WEEK LAST MONTH STATUS
Richards Bay South Africa Jaigad(14m) India 12.87 12.59 13.44 Up
Richards Bay Mundra 12.28 11.99 12.85 Up
Richards Bay Dhamra 13.05 12.75 13.65 Up
Richards Bay Krishnapattam 12.47 12.18 13.06 Up
Richards Bay Fangcheng China 14.97 14.57 15.15 Up
Richards Bay Rizhao 15.39 14.98 15.57 Up
NPLCT Indonesia Dhamra India 8.29 8.08 8.98 Up
NPLCT Gangavaram 8.54 8.33 9.25 Up
NPLCT Mundra 8.61 8.35 9.44 Up
NPLCT Jaigad 8.94 8.69 9.79 Up
Hay Point Australia Vizag 13.68 13.27 14.75 Up
New Castle Fangcheng China 13.2 12.97 14.02 Up
New Castle Rizhao 13.64 13.41 14.47 Up
New Port News USA Vizag India 28.5 27.79 29.89 Up
Tanjung Bara CT Indonesia Fangcheng China 6.58 6.22 7.75 Up
Tanjung Bara CT Rizhao 7.01 6.65 8.21 Up
New Orleans USA Dhamra India 30.93 30.09 30.68 Up
New Orleans Mundra 32.16 31.19 32.02 Up
New Orleans Rizhao China 36.52 35.44 36.28 Up

 

CAPESIZE
Freight in USD/MT
LOAD PORT COUNTRY DISCHARGE PORT COUNTRY 24Nov’17 PAST WEEK LAST MONTH STATUS
Puerto Bolivar Colombia Dhamra India 22.61 21.58 21.2 Up
Puerto Bolivar Mundra 20.85 19.85 19.5 Up
DBCT Australia Gangavaram 12.26 11.8 11.81 Up
DBCT Mundra 12.05 11.55 11.55 Up
Richards Bay South Africa Gangavaram 12.8 12.28 12.65 Up
Richards Bay Mundra 11.35 10.85 11.2 Up
Puerto Bolivar Colombia Fangcheng China 22.9 21.95 22.19 Up
Puerto Bolivar Qingdao 24.05 23 23.25 Up
Richards Bay South Africa Fangcheng 13.61 13.17 13.6 Up
Richards Bay Qingdao 13.8 13.35 13.78 Up
New Castle Australia Qingdao 11.1 10.64 11.2 Up
New Castle Fangcheng 11.7 11.2 11.8 Up
Baltimore USA Mundra India 29.05 28.1 28.15 Up
Norfolk Gangavaram 30.4 29.44 29.52 Up
TBCT Indonesia Qingdao China 6.69 6.14 6.57 Up
TBCT Fangcheng 6.22 5.72 6.12 Up
TBCT Mundra India 8.05 7.4 7.8 Up
TBCT Gangavaram 7.74 7.18 7.54 Up

Source: Bulk Marine

 

Iranian Bulk Iron Ore Export Down by 13% M-o-M in Nov’17

According to the data maintained by SteelMint, Iran exported 1.54 MnT iron ore via bulk shipments in eighth month of current persian year (during 23 Oct-21 Nov’17). Thus export have come down by 13% M-o-M against 1.78 MnT in Oct’17.

China bulk iron ore imports from Iran fell in Nov’17 – China remains the largest importer of Iran iron ore for the month of Nov’17 with 92% share and imported 1.42 MnT in Nov’17 compared to 1.62 MnT in Oct’17. Other major importers of Iranian iron ore was Malaysia at 0.08 MnT followed by other countries at 0.04 MnT .

Iran country wise bulk iron ore Exports Nov’17 vs Oct’17

Country

Nov’17 Oct’17

M-o-M (%)

China              1.42               1.62  -12%
Malaysia              0.08               0.12  -33%
Russia              0.00              0.04  -100%
N/A                       0.04                       0.00                  +100%
Grand Total              1.54               1.78  -13%

Qty in MT
Source: SteelMint Stats, Keyvan Jafari Tehrani
Provisional Data

According to the United States Geological Survey, Iran has holds 10th largest iron ore reserves. Share of iron ore exports from Iran to China have come down on yearly basis. In 2013, Iran exported nearly 23.5 MnT iron ore occupying 2.5% share of seaborne iron ore market imported to China. Now this share has reduced to 1%. Reason behind fall in share is rise in iron ore export volumes from other countries.

 

Iran Bulk Slab Export in Nov’17 Stood at 250,500 MT

Iran exported 250,500 MT Slab and 161,000 MT Billet through bulk shipment in 8th month of current Persian year (23 Oct – 21 Nov’17) – As per vessel line up data.

As per the vessel line up data maintained by SteelMint, Iran’s bulk slab export during 8th month of current Persian year stood around 250,500 MT in current month against 60,750 MT in previous month. As per market sources, Iran export around 80-85% of semi-finished steel through sea, whereas, around 15-20% is exported from land.
Iran majorly exported to Thailand (95,500 MT), Italy (40,000 MT) and India (20,000 MT).

Slab

On other hand, Iran bulk billet export during 8th month of current Persian year was around 161,000 MT as per the vessel line up data maintained by SteelMint. Iran exported majorly to UAE (134,000 MT) and Indonesia (27,000 MT). The nation exported around 217,000 MT of billet through bulk shipment in last month.

Billet

Note: The data above is based on the vessel line data, it doesn’t include container shipment and the Inter-Gulf ships arriving at BIK / BAB anchorages with very short notice.

 
MCL Coal Production

MCL to Cut down Non-Power Sector’s Coal Supply for the Third Successive Month

Mahanadi Coalfields Ltd (MCL) is the second-largest coal producing subsidiary of CIL. The company had decided to cut down coal supplies to the Non-power sector for the third successive month in Dec’17, in order to augment coal supply to the power stations.

According to the circular provided by the Marketing and Sales Department dated 29 Nov’17, the company has asked all Non-power consumers to lift 80% of their monthly scheduled quantity for Dec’17. The Non power consumers lifting coal through FSA, FSA through LOA route, and Linkage auctions, have been requested to apply for coal allocation accordingly.

It is the third time that MCL has asked Non power consumers to lift 80% of their monthly scheduled coal quantity, having earlier made such request in Oct’17 and Nov’17.

Suffering from the ongoing coal scarcity in the domestic market, Consumers’ have shifted their attention towards E-auction mode of coal procurement, which has witnessed aggressive buying among the participants.

The latest round of auction had seen prices falling on account of increased coal offer for sales. However, the need for restocking coal in thermal plants and fall in hydro power generation are expected to keep firm coal shortage for Non Power till Mar’17.

 

NMDC Chhattisgarh Increases Iron Ore Prices Upto 13% for December – Sources

India’s largest iron ore producer – National Mineral Development Corporation (NMDC, Chhattisgarh) has increased iron ore prices up to 13% for Dec’17 deliveries. The miner has raised lump prices by INR 300/MT, fines by INR 200/MT, DR-CLO by INR 360/MT and ROM by INR 280/MT.

Factors driving iron ore prices

1. Recent price hike by private merchant iron ore miners in Odisha. Rungta and KJS raised lumps prices by Rs 400/t ($6.2) and fines prices by Rs 200/t ($3.1)

2. Some big miners in Odisha have utilized their EC (environmental clearance) limit and can not produce till new EC is granted (i.e. from April 2018)

3. Indian sponge iron prices have increased sharply and nearing 3-years high

4.Imported scrap prices continue to rise on strong global demand. Shredded scrap offers have reached $340-345/t CFR India levels

5. Low availability of iron pellets in domestic market as manufacturers are booked till January shipment

6.NMDC’s (Chhattisgarh) recent auction fetched a premium of about Rs 580/t on iron ore lumps

NMDC (C.G.) iron ore prices 

Size

Grade (Fe %)

Prices

Change (in INR/MT) 

Change (in %)

10-40 mm, DR CLO

67

3,050

+360

+13%

Baila lump , 6-40 mm

65

2,600

+300

+13%

ROM, 10-150 mm

65

2,390

+280

+13%

Blue Dust/Fines

64

2,260

+200

+10%

F.O.R prices in INR/MT w.e.f 30 Nov’17

Royalty, DMF, NMET and other taxes extra
Source: SteelMint Research