As per Indian sponge exporters, towards the beginning of week good volumes of Sponge iron are heard to have been booked by Bangladesh based mills. Following this, the fresh export offers increased further by USD 5/MT owing to active demand from domestic & exports along with rising raw material prices.
The average deal price for the sponge iron was reported near about USD 385-390/MT CFR Chittagong, Bangladesh and the quantity booked was around 6,000-8,000 MT, as reported by sources.
Meanwhile the latest export offers have increased following rally in domestic prices & active demand. The latest price assessment for Sponge iron (FeM 78-80, lumps) stood at around USD 370-375/MT CPT Benapole (dry port of India & Bangladesh) & USD 390-395/MT CFR Chhittagong.
Market expects, Indian sponge iron prices to remain strong as scrap prices re-gain globally. Other major factors for the price support mentioned are – short supply, good demand and rally in raw materials.
In a week’s duration Indian domestic sponge iron & raw materials (Iron ore & pellet) prices increased about INR 500-1,000/MT (USD 7-14).
The current offers for Sponge iron lumps (FeM 78-80) in eastern India, which largely exports, have stated about INR 25,800-26,000/MT (USD 359-362) Ex-Durgapur & INR 25,500-25,700/MT (USD 355-358) Ex-Rourkela, excluding GST at 18%.
Local steel prices in Bangladesh
Melting Scrap – BDT 35,000-35,500/MT (USD 418-424).
Ship cutting plate (16 mm) – BDT 41,000/MT (USD 489).
Billet – BDT 49,500-50,000/MT (USD 591-597)
Rebar of Medium-scale – BDT 57,000/MT (USD 680).
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