Indian Sponge iron export offers to Bangladesh have increased by USD 5-10/MT, however the deals at increased prices are yet to take place as buyers remain fairly skeptical over higher offers, SteelMint learned from trade participants.
The latest offers for 80 FeM Sponge lumps stood at around USD 335-340/MT against last assessment of USD 330/MT; CNF Chittagong, Bangladesh.
The exporters in eastern India reported, few small deals during the last week at around USD 330/MT, CNF Chittagong, equivalent to USD 310/MT CPT Benapole (land port of Bangladesh and India).
Bangladesh is a major buyer of Indian Sponge iron and as the prices have been rise, smelters there have limited Sponge iron purchases and are waiting for price corrections to place their orders. Also as the domestic steel demand is weak in the Bangladesh, the mills are not willing to book raw materials at higher prices.
Indian exported about 671,124 MT Sponge iron in CY18 as against 549,072 MT during CY17(Jan-Dec). In the total exports of CY18, Bangladesh imported about 55% material (365,447 MT) and rest is being exported to Bhutan (17.42%), Nepal (16.06%) and Malaysia (5.04%).
Coming to in Jan’19, Bangladesh has imported about 44,210 MT (63.47%) of Indian sponge iron from the total exports of 69,651 MT.
Tata International Ltd, Jsw Steel(Salav) Ltd & Rashmi Cement Ltd were the major Indian sponge iron exporter during Jan’19, as per provisional data.
Imported scrap offers range bound
Imported scrap offers to Bangladesh have remained range bound despite price corrections in Turkey imported scrap prices by USD 5/MT. The latest offers stood at around USD 335/MT for HMS from Brazilian origin & close to USD 340-345/MT for Shredded, CFR Chittagong. Meanwhile, buying interest remain dull and buyers are still bidding below than the current offers.
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