Central India: Improved supply keeps sponge prices under pressure

SteelMint’s benchmark sponge iron (P-DRI) price dropped further by INR 300/t to INR 28,500/t ($382), exw Raipur, Central India. Demand remained weak due to slowdown in furnaces production, while sponge iron supply remain healthy. This resulted in mismatch in supply and demand, leading to a constant drop in sponge prices.

• The Raipur based plants floated P-DRI offers at INR 28,700-28,800/t exw. Meanwhile, a few deals were reported at INR 28,400-500/t on FoR basis.
• Sponge DR CLO grade offers were floated at INR 30,800-31,000/t exw, however bids have been assessed at INR 30,500-700/t exw.

Industry sources are expecting prices to remain under pressure due to weak demand amidst competitive offers from outside plants.