Indian Sponge iron prices have been stable for quite some time owing to lower imports of Scrap and restricted supply of Iron ore from Odisha & Karnataka. However, with global Scrap offers falling and fresh production limits to be issued in Odisha in April 2014, market experts anticipate prices will remain under pressure.
In conversation with SteelMint, Tata Sponge MD, DP Deshpande highlighted Sponge iron scenario in the country.
“I do not see demand improvement in the near future. So the prices will stay at INR 19,000-/MT (Ex-Rourkela) or little more than that in the next quarter also”, said DP Deshpande.
Indian Sponge iron prices have been under pressure for the last few weeks owing to weak demand and cheap imports of Scrap.
He said that the decline in Iron pellet prices by INR 500/MT post imposition of 5% export duty by the central government has helped the DRI industry.
Tata Sponge is one of the largest Coal based Sponge plant in India with an installed capacity of around 4 lac tonnes per annum. Sources confirmed that Tata is offering 80 FeM Sponge iron lumps at around INR 20,300/MT (Ex-Keonjhar).
Domestic Sponge Iron & Sponge Pellet Prices as on 03 Mar, 2014
|
Particular |
Grade (FeM) |
Sponge Iron |
M-o-M |
Sponge Pellet |
M-o-M |
| Mandi Gobindgarh |
78-80 |
23,600 |
+ 400 |
– |
– |
| Rourkela |
78-80 |
19,100 |
– 100 |
– |
– |
| Durgapur* |
78-80 |
20,200 |
– 300 |
18,800 |
– 700 |
| Raipur* |
80 |
21,050 |
– 150 |
19,800 |
– 50 |
| Raigarh* |
79-80 |
19,950 |
– 50 |
19,000 |
0 |
| Bellary |
75 |
19,500 |
0 |
18,400 |
– 100 |
| Hyderabad |
– |
– |
– |
20,000 |
0 |
Basic Prices in INR/MT; Excise duty @12.36; VAT as applicable
*Payment next day
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