IRON and STEEL
India's largest iron ore miner - National Mineral Development Corporation (NMDC) has announced reduction in floor prices in upcoming Karnataka e-auctions scheduled in Apr’19. Iron ore base prices at NMDC Kumaraswamy have decreased by around INR 150/MT in both fines and lumps.
NMDC has decreased fines (Fe 63%) base price from Kumaraswamy mines by INR 144/MT to INR 2,540/MT (basic) against last assessment INR 2,684/MT. Similarly, for Fe 63.8% lump prices have decreased by INR 146/MT to INR 3,030/MT (basic) against last assessment INR 3,176/MT. All prices mentioned are basic, royalty and other taxes extra.
Iron ore operations are still on hold at NMDC’s Donimalai mine, which was renewed lease on 3rd Nov’18 for the next 20 years. But the State Govt. put the additional condition to pay 80% premium on iron ore sale value from Donimalai to the Karnataka state Govt. NMDC was in negotiation with the Govt of Karnataka over its decision to impose an 80% premium on iron ore sales from Donimalai. As the company’s earlier license did not include the premium.
NMDC Donimalai has EC limit of 7 MnT p.a. and produces around 6-6.5 MnT iron ore annually.
NMDC cuts pellet offers in Karnataka
NMDC has also reduced base price for pellets offered from its Donimalai plant in Karnataka. Current offers are at INR 6,900/MT (GST extra) on FoT basis for Fe 64% pellets for a quantity of 15,000 MT on advance payment basis. The price validity is till 15 Apr'19. NMDC's last pellet offers were at INR 7,000/MT on FoT basis.
According to customs data maintained with SteelMint, bulk Indian pig iron export volumes have come down sharply by 50% in FY19. India has exported 221,260 MT pig iron in FY’19 as against 446,250 MT in FY’18. In the month of March pig iron exports from India recorded at 50,000 MT against nil from the previous month.
This week Chinese steel prices witnessed significant increase in domestic market following hike in iron ore prices fueled by limited supply in global market.Also strong futures, improved domestic demand along with higher profit margins lead to uptrend in Chinese steel prices.
South Africa iron ore exports down 21% in Feb'19: South African iron ore exports in Feb'19 recorded at 5.53 MnT, down 21% as against 7.05 MnT in Jan'19. As per sources, the exports dropped amidst Saldanha port maintenance in Feb'19.On yearly basis, the exports increased marginally as compared to 5.25 MnT in Feb'18.
Indian Steel industry observed average inquiries during the Week-15 (9th to 13th Apr) owing to election mood in the country. In context to supply scenario, the production of Semis & Finished steel products more or less on same proportion, this led to volatility in prices.
Anti-dumping duty on imports of Ductile Iron (DI) pipes further extended till 09th May 2019, as per recent notification by Indian government.
Tata Steel Ltd has issued another RFQ (Request for Quotation) for procurement of 15,000 MT imported steel melting scrap for its newly acquired plant Bhushan Steel Limited recently, SteelMint learned from industry sources.