Nepal based steel mills have recently booked sponge iron from India. As per recent update received to SteelMint from trade sources, about 5,000 MT (equivalent to 2 rakes) of sponge iron export deals concluded to Nepal from the eastern India based suppliers.
On an average, the deal price for the 80 FeM Sponge C-DRI (70:30 mix material) reported at close to USD 282-285/MT (loaded to rake) in eastern India, shared Nepal based participant. This attracts freight cost of about USD 25/MT CPT Nepal, Raxaul border.
Nepal is one of the major buyer of Indian sponge iron with an annual imports of about 1 lakh MT. In CY19, Nepal’s sponge iron imports were recorded at around 1,45,000 MT.
Buying inquiries from Bangladesh remain low for Indian sponge iron – Inline with this, Bangladesh is the largest buyer, however in current circumstances demand is not much supportive from the nation as there are no fresh deals reported so far in this week. Meanwhile the latest offes learned at around USD 310/MT CPT Benapole (dry port of India & Bangladesh), this is equivalent to USD 325/MT CFR Chittagong, Bangladesh.
As per market sources, amid average demand of finished steel in the Bangladesh along with sufficient availlibility of raw materials, the major buyers in Bangladesh have skipped fresh bookings as of now amid less clarity in market direction for scrap offers.
The last deals of Indian Sponge C-DRI (80 FeM, 100% lumps) exports to Bangladesh was learned at USD 300-305/MT CPT Benapole (dry port of India & Bangladesh), equivalent to USD 315-320/MT CFR Chittagong, Bangladesh for close to 8,000-10,000 MT.
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