While Indian domestic sponge iron prices continue to move up, exporters have kept their offers on hold. As per SteelMint’s weekly assessment, the current Indian export offers for FeM 78-80 Sponge lumps grade hovering at USD 365-370/MT CPT Benapole (dry port of India & Bangladesh) & USD 385-390/MT CFR Chittagong Port, Bangladesh.
Bangladesh is the largest buyer for Indian sponge iron with an volume of 0.25 MnT from the total 0.55 MnT Sponge iron exports from India, in calender year 2017.
Indian sponge iron prices have strengthen in last couple of week’s on improved demand and rising coal prices. Current offers for export grade stands at around INR 21,500-22,000/MT (USD 323-330) ex-Odisha, INR 22,000-22,300/MT (USD 330-335) ex-Jharkhand & INR 23,400-23,600/MT (USD 351-354) ex-Durgapur – East India.
Indian Sponge Offers & Freight Cost
| Location | Sponge iron lumps | Freight (Benapole) | Total Cost in INR | Total Cost in USD |
| Odisha | 21,500-22,000 | 2,300-2,500 | 24,150 | 363 |
| Jharkhand | 22,000-22,300 | 2,000-2,300 | 24,200 | 364 |
| West Bengal | 23,400-23,600 | 2,000-2,300 | 25,650 | 385 |
According to an Indian exporter, “Last deal was settled at close to USD 360/MT CPT Benapole, couple of weeks ago. But current trade activities remain very thin as Bangladesh based mills are unwilling to pay high price”said an exporter based in eastern region of India.”
Key Inputs from Bangladesh steel market
1. Domestic billet prices trading at 50,000-51,000/MT BDT (USD 583-600)
2. Ship cutting plate prices at 41,000-42,000/MT BDT (USD 483-495), including 15% VAT
3. Mills prefer scrap generated from ship breaking over imported scrap
4. Re-bar prices have dropped to 56,000-57,000 BDT (USD 659-671) in last few weeks
5. Steel demand remains subdued due to festive season
6. Mills may resume scrap purchases post Ramadan festival
7. Imported Shredded scrap offers to Bangladesh at USD 395-400/MT CFR Chittagong
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