Indian sponge iron export prices have come under pressure amid fall in domestic offers as well as global scrap prices. Indian sponge iron export offers to Bangladesh plunged by USD 10/MT, as per weekly assessment made by SteelMint.
The current offers of Indian sponge iron (80 FeM, 100% lumps) are hovering at USD 300/MT, which were last week reported at around USD 310/MT; CPT Benapole (dry port of India & Bangladesh), dropped by USD 10/MT on weekly basis. On CFR basis, the fresh offers would be around USD 315-320/MT CFR Chittagong, Bangladesh.
As per trade sources from Kolkata, eastern India, the export prices have dropped due to falling Indian domestic sponge prices along with weakening scrap prices globally, which were down by USD 20-25/MT in last 10 days. Inline with this, during the same period Sponge iron prices in Indian market plunged by INR 500-1,000/MT (USD 7-14).
Sources added that in the beginning of week days, small deals of total around 2,000 MT sponge iron took place for exports to Bangladesh and the deal price reported at near to USD 300/MT CPT Benapole.
However, they also mentioned that in the current circumstances, the major Bangladeshi buyers are holding back fresh bookings on assumption of further drop in prices following weak demand for scrap globally.
The fresh offers to Bangladesh for containerized Shredded scrap from UK/Europe stands at around USD 310-315 /MT, CFR Chittagong, dropping sharply by USD 20-25/MT as against USD 335/MT, last week’s report. Although, few shredded offers were even reported in the lower level at USD 308-310/MT CFR, with very limited bookings.
Sources are hopeful that sponge iron export demand could remain impacted in near term if scrap prices remain weak as local steel market sentiments in Bangladesh is also seen gloomy.
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