Business Standard reported that Indian steel industry, with no sign of abatement in the ongoing mining crisis that has snapped iron ore supply, has started imports.

The report said that some smaller steel mills have already contracted imports, while major ones are said to considering doing so. The market is buzzing with reports that major steel companies have already begun imports.

An industry source said that “JSW Steel, Essar Steel and Chowgule & Company are understood to have imported for meeting their demand after supplies from Karnataka were cut.”

The industry source maintains the company imported 105,000 tonnes of high grade ore in two shipments from South Africa earlier this year. Another industry source said Essar and JSW have imported 90,000 tonnes each of iron ore lumps from Kumbha Resources, South Africa.

While JSW Steel and Essar Steel’s spokespersons categorically denied this, Chowgule had not replied to the mail sent by Business Standard.

As per report, iron ore imports are happening from South Africa at USD 130 a tonne CIF basis, work out costlier by USD 10 per tonne to USD 15 per tonne than the domestic ore.

If it becomes a trend, it would be significant, as India is a net exporter of iron ore.

(Sourced from BS)