Sponge iron prices are expected to sustain at current levels of INR 13,400-16,000/MT across major Indian markets.
Market participants are anticipating that sponge iron market is likely to stabilize at current levels of INR 13,400-16,000/MT. In similar lines, sponge market in a week has also showed only minor price correction, following no improvement in demand and fall in iron ore prices by INR 100-400/MT.
In a week’s time, sponge iron prices declined marginally in Durgapur (- 300), Raigarh (- 250) and Raipur (- 200). However, a sharp correction of INR 500/MT was witnessed in south India, which was done by manufacturers to match Chhattisgarh and Odisha offers. Prices in Rourkela (Odisha) have almost remained stable.
Post depreciation in Indian currency, Indian scrap buyers (shredded) are reluctant to take position in local markets at USD 250/MT, CIF Mumbai.
Comments:
An induction operator based in Mumbai shared, “We had made a few bookings of imported scrap; shipment is expected to be delivered in 1st week of Nov’15. Until then, scrap and semi finish prices may find support in domestic market as offers are increasing from this level.”
A sponge maker based in Raipur said, “We are shifting to iron pellet. A major deal of 50,000 MT of iron pellet is done today at INR 5,000/MT ex-works, Raipur. It is anticipated that sponge iron production will decline further.”
C-DRI and P-DRI prices as on 18 Aug’15
| Particulars | C-DRI (FeM) | W-o-W | P-DRI | W-o-W |
| Ex-Durgapur# | 14,200 (78) | – 300 | 12,900 (78) | – 250 |
| Ex-Rourkela | 13,450 (78) | – 50 | 12,650 (78) | – 50 |
| Ex-Raigarh | 14,550 (80+) | – 250 | 13,150 (80+) | – 150 |
| Ex-Raipur | 15,200 (80+) | – 200 | 13,200 (80+) | – 300 |
| Ex-Bellary | 14,200 (82+) | – 500 | 12,900 (78) | 0 |
| Ex-Hyderabad | 15,900 (82+) | – 500 | 14,000 (77) | – 100 |
Prices in INR/MT; ex-works
Source: SteelMint Research
Leave a Reply