Sponge iron export demand remains weak even though the prices remained range bound, stated by participants.
As per exporters, following elections in the Bangladesh last week, buying is still poor from the major mills in Chittagong as they were operational for less time owing to poor demand amid elections. This has made demand sluggish for imported raw materials too (Scrap & Sponge iron).
As per them, the fresh deals yet to take place and the offers reported same as against last week at USD 325-330/MT CPT Benapole (Dry port of India & Bangladesh) & USD 345-350/MT CFR Chittagong, Bangladesh.
Meanwhile the last deals highlighted were close to USD 320-322/MT CPT, equivalent to USD 340-342/MT CFR Chittagong.
Imported Shredded scrap offers in containers are at around USD 345/MT, CFR Chittagong.
SteelMint being learnt from the Chittagong & Dhaka – Bangladesh based mills that production was reduced in Dec’18 owing to low demand amidst inventories pile up.
However they confirmed about resumption of full operations in Jan’19 with assumptions of better demand for finished steel products.
Indian Sponge iron exports to Bangladesh increased sharply in 2018 (Jan-Oct) as it stood at 290,130 MT in comparison with 254,663 MT in 2017 (Jan-Dec). Meanwhile overall Indian Sponge iron exports recorded about 534,483 MT in Jan-Oct’18, fall against last year at 549,072 MT in Jan-Dec’17.
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