Indian sponge iron export offers rise sharply, which is supported by rising domestic prices and improved demand from the Bangladesh based mills, which are the largest buyer of Indian sponge iron.
According to SteelMint’s weekly assessment, the latest offers for coal based sponge iron (lumps) of 80-82 FeM are assessed at USD 325-330/MT CPT Benapole and USD 340-345/MT CFR Chittagong, which were at USD 310-315/MT and USD 325-330/MT last week.
Some trades have been reported at around USD 325/MT, CPT Benapole (land port of Bangladesh and India).
Low inventories of imported scrap
SteelMint learned that Bangladesh mills are holding low inventories of imported scrap. Due to heavy congestion at Bangladeshi ports, cost of imports have increased significantly and most of the furnaces are dependent on scrap generated from ship breaking.
“Smelters in Bangladesh have raised their sponge purchase (via land port) in line with higher container freight rates for imported scrap. Also, rising domestic scrap prices have led to improved sponge demand” said an Indian exporter.
Local participants confirm that melting scrap prices have increased from BDT 30,000/MT ( USD 350) to BDT 32,500/MT ( USD 382) in last one month.
Where as imported scrap offers have increased by USD 20/MT in last one month and current offers for Shredded should not be less than USD 360/MT and HMS at USD 340-345/MT, CFR Bangladesh.
Indian domestic sponge iron prices increase
Indian domestic sponge iron prices have increased by about USD 15/MT (INR 1,000) in last one month owing to rising iron ore and coal prices in domestic market. Current offers for sponge iron (C-DRI) of 78-80 FeM lumps is at around INR 19,000-19,500/MT (USD 292-300), ex-Durgapur, excluding 18% GST.
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