Central India: Lower bids continue to pressure on sponge iron prices

SteelMint’s benchmark sponge iron (P-DRI) prices fell by INR 200/t to INR 29,000/t ($393), exw Raipur, Central India. Falling billet prices and lower bids remained as the major factors behind softening sponge iron prices.

• Manufacturers floated sponge P-DRI offers at INR 29,000-29,200/t, however a few deals were recorded at INR 28,800-29,000/t on exw & FoR Raipur basis.
• Sponge DR CLO grade prices slightly dropped by INR 100/t to INR 31,500-600/t exw, as most of the suppliers stayed out of the market due to limited availability of material.

Analysing higher raw material (Iron ore & Pellet) prices, it is expected that sponge prices will rebound in the near term once buying interest improves.