India: Monnet Ispat offering P-DRI at INR 20,000/MT Ex-Raipur

Sponge iron lump (C-DRI) prices move up in Raipur owing to limited supply of Iron ore from Odisha.

Sponge iron prices in Raipur, India’s one of the largest Sponge producing state with an annual production capacity of about 9 MnT, has moved up by INR 200-300/MT. Sources mentioned that prices are also increasing owing to rise in demand from northern & western part of India, which are largely dependent on Scrap.

Monnet Ispat & Energy, India’s one of the largest Sponge iron manufacturer with an annual capacity of 0.85 MnT, is offering P-DRI (Sponge made from Pellets) at about INR 20,000/MT on Ex Raipur basis and C-DRI Fines (Sponge made from calibrated lumps ore) at INR 21,100-21,200/MT Ex- Raipur.

[su_quote]”There is ample supply of Iron pellets in the market, however supply of Iron ore from Odisha has almost dried out after the Supreme Court suspended mining operations in Odisha. C-DRI manufacturers are charging high premium than P-DRI,” said a Sponge iron manufacturer based in Raipur, Chhattisgarh.[/su_quote]

Current offers for P-DRI is at around INR 20,000/MT and C-DRI at around 21,900/MT on Ex-works basis, he further added.

Iron ore lumps availability continues to fall in merchant market after the Supreme Court’s order of suspending merchant mines in Odisha running on second deemed renewal on 16 May, 2014.

It is also noticeable that price difference between P-DRI & C-DRI has increased upto INR 1,700-2,000/MT, which should ideally be INR 1,000-1,300/MT.

Speaking to officials in Odisha, opening of merchant mines does not look simple and Iron ore lumps availability will continue to deplete in coming days.

Current Sponge Prices (INR/MT)

Basic prices for next day/advance payment
ED at 12.36%; VAT as applicable