Benchmark sponge iron (P-DRI) prices dropped sharply by INR 400/t to INR 29,700/t ($399), exw Raipur, Central India. The prices fell consecutively on the second day due to disparity between bids & offers along with constant drop in billet prices. A few deals for P-DRI have been reported at INR 29,500-700/t on exw & FoR basis as against floated offers by Raipur based plants at INR 29,800-30,000/t exw. Similarly, in sponge DR CLO grade, no deals have been reported on floated offers at around INR 32,000/t exw. Sources are expecting sponge prices to drop further on lower offers from outside. In addition, weak billet demand is likely to keep sponge iron prices under pressure.
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