Deals of around 5,000 MT Indian origin sponge iron were reported to Bangladesh this week and export prices have remained firm in recent deals.
Few eastern India (Kolkata) based sponge exporters have reported fresh deals to Bangladesh. As per one of the trading house, he has sold about 3,000-4,000 MT sponge iron and the average deal price reported at near to USD 272-274/MT CPT Benapole.
However another exporter, who deals in prime grade sponge (FeM 80, lumps 100%) has reported trade of around 2,000 MT sponge iron at close to USD 276-278/MT CPT Benapole.
On CFR basis, both deals attract additional freight cost of USD 15/MT CFR Chittagong, Bangladesh.
Hence with these deals, SteelMint’s price assessment for sponge iron exports to Bangladesh more or less firm on weekly assessment and stands at USD 275/MT CPT Benapole, equivalent to USD 290/MT CFR Chittagong, Bangladesh.
It was also learned that the Nepalese mills are also making enquiries for Indian sponge iron, however no fresh deals reported and the offers reported similar to last week at USD 240/MT (FeM 80, lumps 100%) loaded to rake, Jharkhand, eastern India. For Nepal freight cost is about USD 25/MT CPT Raxaul/Jogbani border.
The Indian participants are expecting active demand in sponge iron exports on assumption of good demand of steel in the neighboring countries due to seasonal factors. Also high cost global scrap is a another factor for strong demand in sponge iron.
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