As per SteelMint weekly assessment, Indian Sponge iron export offers to Bangladesh remained firm amid no major deals. However as per sources, trades are likely to remain on lower side in near term.
The current export offers for Sponge iron lumps (FeM 78-80) hovering at USD 340-345/MT CPT Benapole (dry port of India & Bangladesh) & USD 360-365/MT CFR Chittagong.
Further, the industry participants believe, fresh deals to remain inactive, below are the key highlights which indicates to slow demand for exports –
Sharp surge in prices: Amid rise in Indian domestic sponge prices, export offers have gone up by about USD 10-15/MT prior to last week. As per participants, local steel demand in Bangladesh is down due to monsoon, hence the most of major mills have postponed fresh purchases on raw materials.
Depreciation of Indian Rupee: The Indian rupee crashed to historic low of 69.90 against the US dollar. As rupee continue to weaken, import cost of Bangladeshi mills rising, traders are in wait & watch mode.
Logistic issue on festive holidays: Participants reported that, materials lifting to affected in Bangladesh in dry & sea ports next week as Eid festive will be celebrated on 22nd Aug. So producers are cautious about fresh deals as dispatches might take long.
Down trend in Global Scrap prices: Ferrous scrap prices continues the down trend over weak demand & tariff war globally. Recent China’s Ministry has announced imposition of a 25% tariff on US scrap, also the US government has increased tariffs on Turkey’s steel import from 25% to 50%. The imposition of double tariff wars have postponed fresh bookings of overseas scrap with an anticipation of slump in price near term. This weak demand led to price corrections of scrap.
The fresh imported scrap offers to Bangladesh down by USD 8-10/MT and hovering at USD 360/MT for Shredded & USD 330-335/MT for HMS, CFR Chittagong, Bangladesh.
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