Indian Sponge iron prices have noticed a downfall of INR 100-200/MT on Saturday and around INR 200-800/MT W-o-W due to surge in production. Current offers for 80 FeM Sponge iron (C-DRI) are assessed at INR 17,100-17,200/MT and Pellet sponge (P-DRI) at INR 15,800/MT ex-Raipur. Consistent decline in Iron ore prices by NMDC has increased supply of Iron ore and also the production. A big Sponge iron manufacturer is offering C-DRI (0-20 mm; 80 FeM) at INR 16,700/MT ex-works. Iron Pellets is trading at INR 6,000-6,100/MT ex-works in bulk quantities.
Sponge iron prices have also noticed a downturn in Bellary (Karnataka) and offers for 78 FeM C-DRI were recorded at INR 16,400/MT and P-DRI (78 FeM) at INR 15,000/MT ex-works. Sponge players reported that production has improved in the region owing to rise in supply of Iron ore in e-auctions and competitive offers for imported Iron ore.
In Odisha, prices have decreased marginally, however, buying interest remained extremely weak. Participants mentioned that dispatch of Iron ore in bulk quantities from Odisha during March & April is a major factor for decline in Sponge iron prices.
“Iron ore dispatches from Serajudidn mines crossed 1.4 MnT in Mar’15 and will be at the same level in Apri’15. Dispatch from Indrani Patnaik was about 0.4 MnT in Mar’15. Supply will continue to increase from Odisha in coming months”, said a senior executive at one of the mines in Odisha.
Imported Iron Ore Offers move up
Imported Iron ore offers to India moved up after index prices gone up sharply. South African lump (6-30mm; Fe 64%) is heard to be offered at around USD 70-72/MT, CIF India for June deliveries, which was at USD 64-65/MT last week.
Indian importers reported that prices should be around USD 74/MT, CIF India. If someone books a cargo now, laycan would be in June.
C-DRI & P-DRI Prices as on 25 Apr’15
|
Location |
C-DRI |
W-o-W |
P-DRI |
W-o-W |
Premium (C-DRI – P-DRI) |
| Bellary* |
17,000 |
– 500 |
14,800 |
– 350 |
2,200 |
| Hyderabad* |
17,800 |
– 200 |
15,800 |
– 200 |
2,000 |
| Raipur* |
17,900 |
– 300 |
15,800 |
– 200 |
2,100 |
| Durgapur |
17,700 |
– 600 |
16,200 |
– 500 |
1,500 |
*C-DRI: 81-82 FeM; Durgapur: 78-80 FeM
P-DRI: 78-80 FeM
Prices in INR/MT
Source: SteelMint Research
Pellet Prices as on 25 Apr’15
| State | City | Size (mm) | % Fe | Price | W-o-W | M-o-M |
| Odisha# |
Barbil |
6-20 |
63 |
5,200 |
-450 |
-600 |
| Odisha |
Jharsuguda |
6-20 |
63 |
5,500 |
-300 |
-300 |
| Odisha# |
Keonjhar |
6-20 |
63 |
4,800 |
-100 |
-200 |
| Chhattisgarh |
Raipur |
6-20 |
63 |
6,050 |
-100 |
-225 |
| West Bengal |
Durgapur |
6-20 |
63 |
5,900 |
-50 |
-100 |
| Karnataka |
Hospet/Bellary |
6-20 |
62 |
6,300 |
-200 |
-300 |
| Gujarat |
Kandla |
6-20 |
62 |
5,300 |
NA |
NA |
Iron Ore Prices for Apr’15
| State | Miner | Size | % Fe | Price | W-o-W | M-o-M |
| Odisha# |
Rungta |
5-18 mm |
63 |
5,550 |
0 |
0 |
| Odisha# |
Rungta |
10-30 mm |
63 |
4,900 |
0 |
0 |
| Odisha# |
Rungta |
Fines |
63 |
2,400 |
0 |
0 |
| Odisha# |
Serajuddin |
5-18 mm |
63 |
4,850 |
0 |
0 |
| Odisha# |
Serajuddin |
Fines |
63 |
2,250 |
0 |
0 |
| Chhattisgarh# |
NMDC |
6-40 mm |
65 |
3,050* |
-200 |
-200 |
| Chattisgarh# |
NMDC |
Fines |
65 |
1,960* |
-500 |
-500 |
| K’ntka E-auction |
– |
10-30 mm |
63 |
2,500** |
– |
– |
| K’ntka E-auction |
– |
Fines |
63 |
1,800** |
– |
– |
* 15% royalty extra
** 15% royalty + 12 % Forest Development Tax (FDT) extra
# Prices loaded to wagons
Leave a Reply