Sponge iron export offers from eastern India increased slightly on stronger Rupee against US dollar, although fresh deals are yet to take place, as per exporters.
The Indian rupee climbed close to One & half rupee and trading at 70.1 as against last week-end (17th Dec’18) at 71.6 against a US dollar. The domestic sponge iron prices have surged slighlty in this duration. Hence considering these factors, the export offers have slightly moved up from suppliers end.
The current offers are reported at USD 330-335/MT CPT Benapole (dry port of India & Bangladesh), equivalent to USD 350-355/MT CFR Chittagong, Bangladesh. Although during last week it was hover at USD 325-330/MT CPT & USD 345-350/MT CFR Chittagong.
As per suppliers, the last deals for sponge exports were at close to USD 326-328/MT CPT. However at fresh quotations buyers are cautious looking at competitive imported scrap prices, which is on down trend and currently hovering at USD 340/MT as against last week assessment at USD 350-355/MT CFR Chittagong, for containerised Shredded scrap from US origin.
Indian Sponge Iron Prices May Remain Volatile
Sponge iron prices in Indian domestic market are less likely to gain and may remain volatile as supply strengthening amid lowering Ingot/Billet productions due to less conversions (margins) with the standalone mills.
Another key factor behind pressurize sponge market stated was falling prices of raw materials. In recent the Odisha’s merchant miner – Essel Mines has cuts Lump prices by INR 400/MT & Fines by INR 300/MT. This is 3rd time price reduction by the miner in Dec’18.
Further pellet producers are still under selling pressure and weekly price assessments have come down by INR 100-300/MT W-o-W in central, east & southern India.
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