Indian Sponge iron market gained some momentum this week owing to increase in Billet prices and improved demand. Current prices for Sponge iron (C-DRI) are assessed at INR 18,800-19,200/MT (FeM 80, lumps 100%) and Pellet Sponge (P-DRI) at INR 17,100-17,300/MT (Ex- Raipur). Although the production of C-DRI in West Bengal is limited, manufacturers are offering the same at INR 18,100-200/MT and P-DRI offers are at INR 16,000/MT.
Sponge Iron prices in Odisha rose by INR 300/MT in last one week, offers for C-DRI FeM 78 assessed at INR 17,000/MT and offers to FOR Raipur are in the range of INR 18,500-18,900/MT (FeM 80, lumps 70% & Fines 30%).
Sponge iron prices in Karnataka remain unchanged as buying remain low from Hyderabad and MH based units due to higher cost as compared to Odisha.
Indian Sponge Iron (C-DRI) Prices as on 21 Feb, 2015
| Region | Particular | Grade | Price | W-o-W | M-o-M |
| North India | Mandi Gobindgarh | 78-80 FeM | 21,500 | – 200 | – 1,100 |
| East India | Rourkela | 78-80 FeM | 17,000 | + 300 | – 600 |
| Durgapur# | 78-80 FeM | 17,800 | + 300 | – 1,300 | |
| Central India | Raipur | 80 FeM | 18,900 | + 600 | – 650 |
| Raigarh# | 79-80 FeM | 18,000 | + 100 | – 1,100 | |
| South India | Bellary | 75 FeM | 17,200 | – 100 | – 800 |
| Bellary | 77-78 FeM | 17,800 | – 200 | – 1,200 |
Basic prices in INR/MT
Payment advance/next day
#delivered to plant
Pellet buying improves in Eastern India:
Increasing Sponge iron prices have supported Pellet demand. Pellet manufacturers, who had difficulty in selling have made decent bookings this week. Perhaps now, there is limited scope of increase in prices.
Indian Pellet Prices (Fe 63) as on 21 Feb, 2015
| State | Particular | Size | Price |
| Odisha | Barbil | 6-20MM | 5,200 |
| Jajpur | 5-18MM | 4,800-5,000 | |
| Jharsugda | 6-20MM | 5,800 | |
| Chattisgarh | Raipur | 6-20MM | 6,500 |
| Jharkhand | Jamshedpur | 6-20MM | 5,700 |
| West Bengal | Durgapur | 5-18MM | 5,700-5,800 |
Basic Prices in INR/MT
Excise duty @12.36%; VAT as applicable
Barbil- Prices Loaded to Wagons
Iron Ore Situation in India
Rising imports & increasing production has improved the supply in domestic market.
Merchant mines in Odisha, which are closed due to non renewal of leases might operate till 31st Mar 2020, as per the recent mining ordinance.
Sponge manufacturers prefer Pellets over Iron ore
Sponge iron manufacturers are preferring Pellets over Iron ore owing to quick delivery and low prices.
“If we book Iron ore, it generally takes 20-25 days for delivery at our plant, whereas for Pellets it takes just about a week. Market is quite volatile so we will prefer Pellets over Iron ore,” said a Sponge iron manufacturer based in West Bengal.
Recent Iron ore auction by Orissa Mining Corpotaion (OMC) reported very cold response from steel makers. Out of 337,000 MT Iron ore offered, only 32,000 MT could manage to receive bids, rest went unsold.
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