"Indian Iron ore lumps prices unlikely to correct soon"- Miners

21-Mar-2012 , 12:16:12 PM
Indian Iron ore lumps prices which are hovering at almost all time high are unlikely to show any
sign of softness said miners.
" There is not much availability of iron ore in the market as production limit has been tightened by
Indian Bureau of Mines. Also local formalities at mining office in Orissa keeps it difficult to get the
permit." said a miner based in Bhubhaneshwar.
We do not see any sign of correction at least in next few months, he further added.
Currently 5-18mm of 62% Fe is hovering around Rs 6500-6800/t Ex-Mines Orissa, where as bigger
miners are offering around 63% at Rs 7500/t (Loaded to wagons) said market sources.
Most of mines in Odisha still remain closed either on environmental violation or
excavating beyond permissible limit.

Indian exporters fetch higher price for low grade Iron Ore
21-Mar-2012 , 10:52:05 AM
Indian miners fetched few dollars high on low grade iron ore in the spot market. Much sought low
grade iron ore offered by Sesa Goa (India's one of the largest exporter of Iron ore) sold 50/50%
Fe fines of 80,000 Mt at $92/t, CFR and another cargo of 52/52% Fe lumps was heard concluded
at $ 102/t CFR.
Higher grade cargoes of 63.5/63 Fe remained steady at $150-151/t CFR.
" There are hardly any offers of higher grade in Indian markets. Low grade iron ore demand is
pretty strong at the moment. 53-54% Fe cargo is offered in the range of Rs 2350-2400/t (Ex
Vizag)." said an iron ore fines trader based in Hyderabad.
There was offers from a Brazilian producer, The cargoes on offer were, 175.5 wmt 64.95% Fe
which was heard to have dealt at $152 and 160kt of
62.8%Fe believed to have concluded at $147, CFR.

Spot 63.5 iron ore fines steady at $150/t, CFR

19-Mar-2012 , 10:17:43 AM
Spot iron ore market remained stable at $150 mark for 63.5/63 Fe Indian iron ore fines.Indian
exporters still holding limited stock at ports despite cut in freight charges for exports of iron ore.
"Despite cut in freight rates by Indian railways on exports of iron ore, movement has still been
very low. Though spot prices are high in international market but higher duty makes Indian iron
ore fines unfeasible for exports." said a large merchant exporter based in Mumbai.

There are quite a few Brazilian cargoes in the market , A tender for 238kt SSFG 63.45% was heard
to be concluded at 148.17. Two other cargos of SSFG 63.42% and SFOT 62.76% were heard to
have concluded at $148.68 and $140.27 respectively.
Australian PB fines of 61.5 % Fe (Equivalent to Indian 62% Fe) hovering around $145/t, CFR.
It was also reported that Indian iron ore fines of 53% Fe is offered at RS 2400-2450/t F.O.R Vizag
Port.

Iron ore export duty kept unchanged at 30%

16-Mar-2012 , 06:34:08 PM
As far as Iron ore is concerned the Government has yet again showed its clear intensions to
conserve the natural resource for future use by keeping the Iron ore export duty unchanged at
30%.
However, market participants expected that at least the export duty on low grade Iron ore would
be cut as they are not used widely in the domestic industry.
The estimated forecasts for Iron ore exports for this fiscal had already reached around 50 million
tonnes from previous 75 million. So, now with no change in export duty, Iron ore export volumes
are set to fall further especially from Goa which exports mostly low grade Iron ore.
The Govt. bodies are however in support of keeping the export duty unchanged and say, it is
absolutely necessary to conserve raw material for future use and setting up of more beneficiation
and pelletisation plants should be encouraged to make use of the low-grade iron ore available in
the country.

Goa to limit iron ore exports to 40-42 million MT

13-Mar-2012 , 11:52:00 AM
The Goa government has decided to cap iron ore exports from the state at 40-42 million metric
tonnes per year, said Chief Minister Manohar Parrikar.
The state exported 54 million tonnes of ore last year when there was no cap. The damage caused
by mining to the fragile environment has been a big concern in Goa of late.
The Goa government would ensure that mining did not go beyond the state's sustainable capacity.
"We can allow mining up to 40-42 million tonnes maximum, as against 54 million tonnes last year,
which was the result of rampant illegal mining", said Parrikar.

"Demand for Indian lower grade Iron Ore fines strong"- Indian Exporters

13-Mar-2012 , 07:55:57 PM
It is reported that demand lower grade iron ore fines from India is firming up on strong demand
from China and low availability of high grade at Indian ports.

Sesa Goa was heard to have concluded 54% Fe lumps at $108-109/t CFR China, where as
other miner concluded a deal of 50% Fe at around $74/t FOB Goa said market sources.
"Demand for low grades is really firming up, based on the better prices that we're seeing trades
being done at. V.M. Salgaocar sold for a pretty high price and if PT Resources is really re offering
at $94/dmt CFR for 50% Fe fines, that will really push the market up," reported Platts.

Steel prices might go up by 500-1000/MT next month, says JSW

21-Mar-2012
Steel prices are expected to rise by about Rs 500-1000/MT by early next month due to recent
increase in excise duty and hike in iron ore freight rates.
Confirming the move to effect a price hike, a senior official of the JSW Steel said, "It is on the
drawing board, a decision will be taken by next week and the hike will be effective early next month."
In the Budget for 2012- 13, announced last Friday, the Finance Minister, Mr Pranab Mukherjee has
increased excise duty rate from 10% to 12 %.
Besides, the Railways had also increased freight rate on domestic iron ore transportation by 20% on
March 6 to meet its revenue earnings targets, which was hit by the ban on export of the vital steel
making raw material in the states like Karnataka and Odisha.
Essar Steel (India) CEO & MD, Mr Dilip Oomen also said, "The cost push due to increased duty and
iron ore freight rates is Rs 1,000 per tonne. So, it (price increase) will not be less than that. This will
get reflected (in prices) by the end of this month."

Arcelor Mittal closes Luxembourg furnace indefinitely

21-Mar-2012
Arcelor Mittal, the world's largest steelmaker said on Tuesday it will extend the closure of its electric
arc furnace in Schifflange, Luxembourg, indefinitely, a measure which highlights the deep crisis
affecting
the
EU
steel
sector.
"Unfortunately the construction market, for which the products at Rodange and Schifflange are made,

has not recovered from the downturn that started at the end of 2008 and there is still no sign of
meaningful improvement," Nico Reuter, ArcelorMittal's Europe vice-president for long carbon steel,
said
in
a
statement
on
Tuesday.
This

closure

extension

follows

similar

ones

at

other

European

sites.

Other high-cost European steel plants are also likely to be shut in the near future as low steel prices
and
poor
demand
make
them
unprofitable,
analysts
and
traders
said.
"Steel prices are not too spectacular, underlying demand is not great while costs are rising so there is
still potential for many high cost mills to be shut down in Europe," said Kaye Ayub, steel and iron ore
consultant
at
Meps.
Competition from lower-cost producing areas such as Turkey, Russia and Ukraine, and Asia has also
reduced
steelmakers'
margins.
"This is the beginning of a number of shutdowns across Europe; Europe can simply no longer
compete with the cheaper material being produced in other parts of the world and consumption of
standard-grade steel is also falling in Europe," said a source at a UK-based steel trading house.
"There is only one solution: steel mills have to shut down. ArcelorMittal is likely to be the leader in
this field as they are so large and diversified, that they are able to shut down one or two plants and
still remain a competitive player. Small mills will either have to change the type of steel they produce,
or
eventually
go
bust."
At its sites at Rodange and Schifflange, considered a single operational unit, the mill will continue to
operate on two shifts, the company said.
Source: The Economic Times

Steel mills in Karnataka seek for immediate relief is supply of Iron ore
12-Mar-2012 , 11:53:27 AM
Steel production in Karnataka is witnessing a drastic fall due to supply of poor quality iron
ore.
The industry says that over 22 million tonnes (MT) of iron ore from the stock of 25 MT has
already been auctioned and remaining ore has big presence of alumina, silica and manganese,
leading to fall in production as these contents can not be removed.
We are running our blast furnaces at 70 per cent capacity. We are hoping to get an immediate
relief from the Supreme Court, JSW Steel's Joint Managing Director and CFO, Mr Seshagiri
Rao, told PTI.
He added that availability of quality iron ore is a challenge ... quality is not good, it contains
5-6 per cent mix of alumina, silica and manganese . This can not be removed.
Besides, other iron and steel makers in Karnataka, which produces about 16 MT of the metal
alloy every year, have also lowered their production substantially due to lower quality and
depleting stocks of iron ore, industry sources said.
Expressing similar views, an official of a leading sponge iron manufacturer in the state, said,
Stocks of iron ore has nearly been exhausted and quality of the ore is inferior. Our

equipment and machinery would become permanently unusable at the quality. It's better not
to produce.
The companies are hoping that the apex court would partially lift the ban, following the
submission of final report of Central Empowered Committee (CEC) last month.
Indian iron ore exporters rejoice on weak rupee; Spot 63.5 at $151/t

23-Mar-2012 , 12:04:47 PM
There is something to rejoice for Indian iron ore exporters after a long time. When iron ore prices
in International market are rising up and on the other hand weak rupee gets them the better
realization.
" International prices have gone up by $2-3/t this week after Australian ports were closed due to
cyclone. Weak rupee has given better realization to Indian exporters." said a miner and exporter
based in Orissa.
It is reported that an Indian cargo of 63.5/63 Fe concluded at $151/t, CFR.
Market also wait for Sesa Goa's tender for 54% Fe iron ore to be held on 24-27th March.

Rupee falls below 51 per USD; at 9-wks low 23-Mar-2012

The rupee weakened to its lowest level against the dollar in two months on
Thursday due to year-end dollar demand and slowing foreign institutional
investments in the local stock market even though the Reserve Bank of India
(RBI) sold dollars to limit the local currencys slump. Typically, demand for
the dollar by companies rises as the fiscal year comes to a close to pay for
imports.
The rupee ended at 51.2175 to the dollar, down 1.1% from 50.6575 on Wednesday.

Spot iron ore inches up by $1; 63.5/63 at $151-152 CFR

Spot iron ore prices in China inched up by $1 on improved sentiments from Chinese importers.
63.5/63 FE cargo reaches $151-152/t CFR.

Market traders report SteelMint that a large Indian miner was able to fetch $151/t for 63.5/63
from Indian east coast last week and now quotes have been increased to $151-152/t , CFR.

" There are more low grade cargoes available on East coast of India. Traders have raised their
offers by Rs 50-100/t on improved prices and weak rupee.

54% Fe iron fines is offered at Rs 2600/t (F.O.R Vizag), where as 58% Fe iron fines was heard
trading at Rs 3200/t (F.O.R Vizag)." said a trader based in Vizag.
INTERNATIONAL MARKET
Newman fines Fe62.7% and Yandi Fines Fe57.5%. A Chinese steel mill secured these cargoes
concluding at $149.70/t and $135.50/t respectively.
Both these prices are slightly higher, with Newman last trading at $149.30 and Yandi $135.30.
27-Mar-2012 , 11:59:58 AM
Goa government has come out with its mining Budget yesterday. The key outcome of the budget
as given as follows:
* Imposition of a fee of Rs 250-500/MT depending on iron ore percentage on all the dumps on
government and forest land
* Auction for the Iron ore deposited on agriculture land owned by individuals
* The budget has also proposed to allocate 60% of the revenue generated through mining royalty
for infrastructure development of the iron ore rich belt, which has been facing difficulties due to
narrow roads.
* VAT on petrol would be almost abolished. There would a VAT at 0.1%, just to keep a sale record.