Domestic sponge iron market this week has witnessed slight improvement amidst improved domestic and global sentiments.
Sponge prices across major Indian markets upticked by INR 300-700/MT W-o-W. However, manufacturers weren’t anticipating such an improvement in near-term looking at sluggish sales.
SteelMint assessed that induction operators are currently buying raw material from hand to mouth, owing to highly the volatile market. However, they are hopeful of slight decline in sponge iron prices amid seasonal slow production and buying.
Recently, an Odisha based major merchant miner, Essel Mining has corrected iron ore prices by INR 300-400/MT wef 11 Aug’15. In addition, today Serajuddin has also reduced its iron ore prices by INR 300/MT. It is expected that other miners will follow suit. This may lead to fall in sponge prices in near-term.
In addition, South African RB2 coal prices fell USD 9-10/MT (INR 580-600/MT) in a single quarter, to current level of USD 56-57/MT, CFR East Coast India. It is expected that prices may decline to USD 54-55/MT till August end; providing some relief to sponge makers.
P-DRI and C-DRI prices as on 11 Aug’15
| P-DRI
|
Market | Grade (FeM) | Prices | W-o-W | M-o-M |
| Ex-Durgapur# | 78 | 13,150 | + 650 | – 400 | |
| Ex-Rourkela | 78 | 12,700 | + 400 | – 100 | |
| Ex-Raipur | 80 +/-1 | 13,400 | + 100 | – 350 | |
| Ex-Bellary | 78 +/-1 | 12,900 | – 300 | – 700 | |
| Ex-Hyderabad | 77 | 14,100 | 0 | – 400 | |
| C-DRI
|
Market | Grade (FeM) | Prices | W-o-W | M-o-M |
| Ex-Durgapur# | 78 | 14,400 | + 400 | – 1,200 | |
| Ex-Rourkela | 78 | 13,500 | + 200 | – 700 | |
| Ex-Raipur | 80 +/-1 | 15,500 | + 750 | + 750 | |
| Ex-Bellary | 78 +/-1 | 13,700 | – 200 | – 900 | |
| Ex-Hyderabad | 84 | 16,400 | 0 | – 500 |
# delivered
Payment next day/advance
Source: SteelMint Research
Iron ore and pellet as on 11 Aug’15
| Iron ore
|
State | Miner | Size | % Fe | Price | M-o-M |
| Odisha | Rungta | 5-18 mm | 63 | 4,950 | 0 | |
| Odisha | Rungta | Fines | 63 | 2,250 | 0 | |
| Odisha | Serajuddin | 5-18 mm | 63 | 3,250* | – 300 | |
| Odisha | Serajuddin | Fines | 63 | 1,500* | – 100 | |
| Chhattisgarh# | NMDC | 6-40 mm | 65 | 2,950 | 0 | |
| Chhattisgarh# | NMDC | Fines | 65 | 1,660 | 0 | |
|
Pellet
|
State | Markets | Size | % Fe | Price | M-o-M |
| Odisha | Barbil | 6-20 mm | 63 | 4,200 | 0 | |
| Chhattisgarh | Raipur | 6-20 mm | 63 | 5,100* | – 400 | |
| West Bengal | Durgapur | 6-20 mm | 63 | 4,800* | – 50 |
*ex-mines prices
#excluding royalty
Prices loaded to wagons and including royalty
Source: SteelMint Research
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