Sponge iron prices in eastern region have corrected further by INR 200-300/MT owing to low buying interest from Ingot/Billet manufacturers. C-DRI offers in the domestic market are hovering in the range of INR 19,000-21,000/MT ex-works for 78-79 FeM grade.
There is some respite for Sponge units based in Chhattisgarh after NMDC reduced Iron ore prices by INR 100-200/MT.
Key Highlights
- Iron ore situation continues to remain disturbed in the domestic market with handful of miners operating in Odisha & Jharkhand
- Participants believe Serajuddin may start offering Iron ore this month, which will ease some pressure on supply of Iron ore
- Iron ore imports have hit an all time high of 6.8 MnT during Apr-Nov’14
- Expected increase in power tariff by 20% in Maharashtra may put pressure on Sponge & Scrap prices
- Imported HMS 1&2 Scrap offers at USD 310-320/MT CIF Nhava Sheva
- Imported Iron ore lump (6-40mm) offers assessed at USD 95-100/MT CIF India (in bulk)
Trade-wise
- JSW sold some quantity of Pellet Sponge (79 FeM) to Goa based furnaces at INR 17,500/MT ex-Bellary
- JSW was heard offering gas based DRI (high quality) at around INR 22,100/MT from its Maharashtra plant
- 74 FeM Pellet fines from Middle East was offered at USD 180/MT CIF Nhava Sheva
- Sponge manufacturer based in Raipur sold C-DRI (lump; 80 FeM) at INR 20,100/MT ex-plant; advance payment
Sponge Iron Weekly Price Change
| Particular | Grade | C-DRI | W-o-W | P-DRI | W-o-W |
| Ex-Raipur | 79-80 FeM | 19,900 | -600 | 18,300 | -250 |
| Ex-Raigarh | 79-80 FeM | 19,700 | -700 | 18,500 | -500 |
| Ex-Rourkela | 78 FeM | 19,100 | -200 | – | – |
| Durgapur FoR | 78 FeM | 21,000 | -500 | 19,000 | -450 |
| Ex-Bellary | 77-78 FeM | 19,100 | -200 | 17,300 | -600 |
Prices in INR/MT
Source: SteelMint Research
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