As per Indian sponge exporters, no fresh deals to Bangladesh have been concluded after mills refrained from fresh purchases due to slump in local steel & scrap prices. It was also noted that, the mills in Bangladesh have sufficient inventories & pending dispatches owing to which they are exercising caution in placing fresh orders.
SteelMint’s current week price assessment remains similar to that of the previous week currently standing at around USD 365-370/MT CPT Benapole (land port of Bangladesh and India) & USD 385-390/MT, CFR Chhittagong, Bangladesh for 80 FeM sponge lumps.
Eastern India – An Odisha based large sponge manufacturer confirmed that, dispatches for exports of about 15,000-20,000 MT for which deals have been concluded during Mar 2018 are still pending. Hence, there is no selling interest for exports and the major focus is on clearing earlier orders.
Similarly, the producers in Jharkhand mentioned that, as the buying interest is poor for exports, their attention has been diverted towards the local market. The domestic trades have reported at around INR 21,600-21,800/MT (USD 324-327) which is quite good as opposed to presently prevailing exports prices. The logistic cost for CPT from Jharkhand assessed at around INR 3,000/MT (USD 45), thus export deals should be at close to USD 370-375/MT which is currently hovering at USD 365-370/MT CPT.
Imported Scrap offers firm
The shredded scrap offers to Bangladesh have remained firm this week and heard at USD 400-405/MT from USA & UK origin, CFR Chhittagong. Meanwhile, PnS grade scrap offers are hovering at USD 410, CFR.
As per sources, slight buying interest has been seen from indentors and deals through containers have been taking place in these offer prices.
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