IRON and STEEL
China iron ore future edged up 4% today due to supply crisis from Vale over delay in resumption at Brucutu mines. Vale on Monday (6th May) was ordered by the Minas Gerais Court of Justice (Tribunal de Justiça do Estado de Minas Gerais - "TJMG") to hold production at its Brucutu mines.
The miner on 19th Mar had received court's order in favor of resumption at Brucutu mine and on 21st Mar, Vale received approval from the State Agency for Environment and Sustainable Development (SEMAD). Later, on 17th Mar the miner had received final approval for resumption at its Bruccutu mines.
Towards early Feb'19, Vale had shut operation at its Brucutu mines, causing a production loss of about 30 MnT pa. The move was a step ahead towards safety after iron ore producer underwent collapse at its dam at Corrego do Feijao mine in Minas Gerais in Brumadinho, Brazil on 25th Jan'19.
Vale reaffirms its iron ore and pellet sales estimate for the year to be at the low to mid-end of 307-332 MnT.
Average global iron ore fines prices increased amid material availability crisis
Monthly average global iron ore fines (Fe 62%) prices increased to USD 93/MT, CFR China in Apr'19 compared to USD 76/MT, CFR China in Jan'19. Australian major iron ore miners also announced reduction in iron ore guidance for the year as an effect of cyclone Veronica.
This week imported HRC offers to Vietnam inch down by USD 5/MT on weekly basis after lowering of offers from Chinese mills amid weakening of Yuan against USD
Sponge iron market seems to remain strong, as per manufacturers in central & eastern India. Rising raw material prices & active demand are likely to keep Indian sponge iron prices supported, they added.
It seems that the Graphite electrodes shortage that has cropped up in China in the latter of 2017 amid closure of polluting GE units seems to settle out as considerable surge have been recorded in country’s electrodes production as well as exports for the first quarter of 2019.
Department of Mines and Geology (Govt. of Karnataka) has floated the tender for auctioning of 4 iron ore blocks in Karnataka for its 4th phase.
According to the latest data from the National Bureau of Statistics, China's daily average crude steel output in April 2019 was 2,834,300 tonnes, breaking the record high average of 2,694,800 tonnes per day of crude steel output in September 2018.
Indian spot steel prices sharply surge by INR 300-600/MT in a day on improved demand in finished steel products amid positive outlook. The sources have reported better response from the stockiest & end user segment.