Sponge iron prices in Indian domestic market rebounded post hitting 5 months low as current price range were last seen during Jul’18 end, the price assessment made by SteelMint Research show.
As per participants, surge in Billet prices coupled with positive trends and fluctuating global steel prices has influenced producers to slightly raise their offers on day-to-day trades by around INR 200/MT (USD 3).
The latest offers for Sponge P-DRI hovering at INR 20,000/MT ex-Raipur, INR 19,000/MT ex-Raigarh – Central India, INR 19,200-19,300/MT in Durgapur – East India & INR 19,500-19,700/MT ex-Bellary – Southern India.
Market believes, Indian sponge iron market to find stability or remain volatile, stated that there is no major change in raw material prices – Iron ore, Pellet & Coal as plants operational below the conversion spread (margins).
As per standalone sponge iron plants who’s capacity is about 100-300 TPD stated, average required price gap (conversion) between Pellets & Sponge P-DRI is about INR 13,000/MT, which is currently hovering at INR 13,500/MT in Raipur & around INR 12,500/MT in Durgapur & Bellary.
Demand for Exports Remain Stable
The exporters based in Eastern India (Odisha & Jharkhand) reported average demand for exports following subdued finished steel demand in domestic market of Bangladesh. Bangladesh is the major buyer of Indian sponge iron exports accounted for near about 50-55% of total exports from India.
The latest export offers for FeM 78-80 Sponge iron lumps from eastern Indian hovering at INR 345-350/MT CFR Chittagong, Bangladesh, equivalent to USD 325-330/MT CPT Benapole port (dry port of India & Bangladesh).
Recently small parcel deals have been concluded close to USD 327-329/MT on CPT Benapole, a supplier stated.
India’s sponge iron exports to Bangladesh increased during the first ten month’s of calender year 2018. India exported about 255,463 MT sponge iron during Jan-Nov’18, which was about 254,663 MT in Jan-Dec’17, up marginally.
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