Indian sponge iron export offers increase further by USD 5-10/MT Week-on-Week. However, on price rise the buying interest slowdown from the Bangladeshi mills, exporters stated.
SteelMint’s current week price assessment for lumps grade FeM 78-80 sponge iron stood at around USD 395-400/MT CPT Benpole (dry land port of Bangladesh & India) and USD 415-420/MT CFR Chittagong, Bangladesh.
Meanwhile, the last export deals by the producers in East India, Odisha are reported at around USD 386-390/MT CPT & USD 405-410/MT on CFR Chhittagong basis.
“In last week, healthy bookings were made at around USD 386-388/MT CPT. Meanwhile, in the current week yet there is nil inquiries due to the increase in price at USD 395/MT. The Bangladeshi buyers are not in hurry as they booked good volume of Imported Scrap & Indian sponge iron in last couple of weeks” stated by one of the renowned sponge producer & exporter based in Odisha, India.
About 5,000 MT sponge iron were booked at the price range of USD 386-388/MT CPT, during last week, he added.
Notably, in last 1-2 weeks the intenders in Bangladesh reported aggressive bookings for imported containerize shredded scrap at the price range of USD 405-415/MT and bulk bookings being made by large steel producers in Bangladesh during Feb-mid at around USD 380-385/MT for which shipments to come in current month.
The latest Imported scrap prices in Bangladesh are hovering for Shredded from UK and USA at USD 415-418/MT, while few offers also heard at USD 420/MT & for HMS 1&2 (80:20) offers are at around USD 400/MT (both in containers) from Dubai and Brazil, CFR Chhittagong.
Domestic steel demand remain strong in Bangladesh owing to seasonal pick construction activities. The local ship breaking prices also increase following good demand amid rise in global scrap prices. The price range for domestic ship breaking are assessed at around 35,000 BDT (Bangladeshi TAKA), USD 420/MT, ex-works & excluding local taxes.
Domestic Sponge Prices Gain
Indian domestic sponge iron prices remain on rise on improved inquiries. However, it seems that prices will soon come under pressure as Iron ore supply have improved with the resumption of mining activities by Odisha’s major miners.
Current offers for 78-80 FeM Sponge iron (C-DRI) are assessed at INR 22,500-22,700/MT (USD 346-350) ex-Durgapur & INR 20,700-20,900/MT (USD 319-322) ex-Rourkela, East India.
The same grade material in other parts like Central India-Raipur traded at INR 21,500-21,700/MT (USD 330-334) & in South India – Bellary at INR 21,200-21,400/MT (USD 326-329). The prices mentioned are ex-plant & excluding local taxes (GST at 18%).
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