Sponge price in eastern India went down by INR 300-700/MT W-o-W, giving signals to watch prices of central & southern India.
Indian sponge makers are tussling with iron ore prices due to squeezed production cost. A market participant said that sponge prices will remain under pressure in near term due to over supply and increased availability of iron ore. In week 26, few Odisha miners reduced lumps prices by INR 300/MT; other miners may soon follow suit. Similarly, NMDC is also expected to reduce prices for July’15 deliveries.
Pellet Sponge & Iron-Ore Sponge Prices
|
P-DRI |
Markets | Grade | Prices | W-o-W | M-o-M |
| Ex-Durgapur# | 78 FeM | 13,100 | -800 | -1,400 | |
| Ex-Rourkela | 78 FeM | 12,900 | -500 | -1,100 | |
| Ex-Raipur | 80 +/-1 FeM | 14,350 | +100 | -450 | |
| Ex-Bellary | 78 +/-1 FeM | 13,800 | 0 | -200 | |
| Ex-Hyderabad | 77 FeM | 14,500 | -200 | -100 | |
|
C-DRI |
Markets | Grade | Prices | W-o-W | M-o-M |
| Ex-Durgapur# | 78 FeM | 15,200 | -700 | -1,100 | |
| Ex-Rourkela | 78 FeM | 14,300 | -300 | -500 | |
| Ex-Raipur | 80 +/-1 FeM | 16,000 | NA | -700 | |
| Ex-Bellary | 78 +/-1 FeM | 14,700 | -200 | -650 | |
| Ex-Hyderabad | 84 FeM | 16,800 | -50 | -200 |
# delivered
Payment next day/advance
Source:SteelMint Research
Trade wise:
1.Jharsugda (Odisha) based sponge manufacturers offered P-DRI 78-79 FeM at INR 12,800- 13,000/MT, whereas in Raipur it is available at INR 14,300-14,400 /MT
2.Odisha based sellers are offering CDRI at INR 14,500/MT whereas in Raipur it is available at INR 16,000-16,200/MT, by only few makers.
3.Supply from Odisha to Raipur for sponge iron increased this month
4.Durgapur manufacturers are offering P-DRI at INR 13,100/MT and CDRI at INR 15,300/MT. Demand from North India for semi finish is average.
5.Bhaskar Steel based in Bonai (Odisha) is selling 80 FeM C-DRI at INR 14,500-14,600/MT ex-works; advance payment
6.Western India based induction operators prefer to buy C-DRI from South against central & eastern India owing to cheaper offers; 82 FeM C-DRI lump available at INR 15,600-15,800/MT ex-Bellary (Karnataka), while in Raipur it was offered at approx INR 16,700-16,900/MT.
7.Pellet prices unchanged across India W-o-W.
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