Sponge prices corrected by 100-200/MT on W-o-W, due to production cut in Ingot/Billet manufacturing.
SteelMint learned that production cut of Ingot/Billet has pushed down Sponge prices as selling pressure increases. Major the fall was seen in Central India market.
In Central India, Sponge Iron availability has increased, that resulted in reduction of Sponge offers by around 100-200/MT in a week’s time. Raipur Sponge iron prices are down by 1% W-o-W by INR 100-200/MT and offers are now quoted at around INR 20,000-20,200/MT FeM 80 in advance payment. Similarly, Sponge Pellet offers are down by INR 200-300 Present offer are at INR 19,100/MT which was at around INR 19,300-19,400/MT on 09 Dec, 2013.
Market participants in Raipur expect, prices pressure on Sponge will increase further.
‘Increased availability of Sponge and production cuts of furnaces to around 60% might stabilize semi finish prices.” Said well know Sponge/Ingot broker.’
There’s a similar situation in Raigarh of increased Sponge iron availability. Earlier, major plants were producing Sponge for Jindal Steel. But now, Jindal Steel has withdrawal the conversion of Sponge Iron due to its increased production. Therefore Sponge manufacturers (7-8 Units) are producing and selling material in the local market. In addition, low production of Ingot/Billet and poor sales is pressurizing Sponge prices, confirmed local trader.
Durgapur and Rourkela Sponge markets are also down by INR 100-300/MT in last 2-3 days. However, Ingot offers remain firm owing to production cut and good demand from Mandi and U.P. Sponge prices in Durgapur are now quoted at around INR 20,200/MT.
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