As per SteelMint’s weekly assessment, Sponge iron export offers have increased by about USD 10/MT following the rise in domestic prices. The local sponge iron prices in Indian market increased close to INR 500-1,000/MT (USD 7-14) in a week’s duration.
The latest export offers for FeM 78-80 Sponge iron lumps from eastern India stood at USD 340-345/MT CPT Benapole (dry port of India & Bangladesh) & USD 360-365/MT CFR Chittagong, up against last assessment at USD 330-335/MT CPT & USD 350-355/MT CFR.
An exporter based at Kolkata, eastern India stated “amid rise in domestic prices, export offers have gained, however demand remained subdued. Recently a deal of about 2,000-3,000 MT sponge iron concluded at close to USD 340-345/MT CPT, he added.
He also indicated further rise in prices as global scrap prices have started to surge due to re-stocking on winter season. This is likely to support Indian sponge iron demand in domestic & exports as well.
Imported scrap offers to Bangladesh remain high, however buying interest seen at lower prices. The price assessment for Containerised Shredded 211 is around USD 375-380/MT, CFR Chittagong.
Statistics
Indian Sponge iron exports to Bangladesh have slightly increased in Aug’18. India’s sponge export to Bangladesh stood at 24,129 MT in Aug’18, surge as against 23,818 MT in Jul’18. The total sponge iron exports from India is about 434,804 MT during Jan-Aug’18, in which Bangladesh has imported at 233,879 MT (53.8%).
However, the country’s bulk ferrous scrap imports have plunge on monthly comparison and stood at 55,442 MT in Sep’18 as compared to 88,140 MT in Aug’18. During the Jan-Aug’18, the bulk scrap imports in Bangladesh recorded at 797,584 MT.
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