Sponge iron prices in central and southern markets rose by INR 300-500/MT owing to raw material shortage in western and northern India.
Sponge manufacturers based in central and south India mentioned that demand has increased suddenly compared to previous month, which in turn is supporting sponge prices in the market. They further added that dispatches of previously booked material is still going on, thus at present, we don’t have any selling pressure.
Western and northern India based melters are the major buyers of sponge iron produced in central and southern regions. Depreciating INR has made melters cautious of buying imported scrap. This has led to raw material crisis in these markets. As a result, sponge iron prices have gained momentum.
However, amid sharp hike in pellet prices, sponge prices in Durgapur rose by INR 300/MT. While, Rourkela based manufacturers have kept offers unchanged in this week.
Trade-wise
1. NMDC has reduced iron ore lump prices upto INR 400/MT but kept fines prices unaltered.
2. Odisha based miners may reduce iron ore prices this week. Rungta has already cut prices, others are expected to follow suit.
3. Jindal Steel & Power raised pellet offers by INR 350/MT to INR 4,750/MT (loaded to wagons).
4. Jayaswal Neco is offering pellet (Fe 63%) at INR 5,500/MT (after considering VAT exemption).
5. Pellet prices in central and eastern markets rose by INR 100-500/MT, but remained stable in western India. Jindal Saw is offering Fe 63% pellets at INR 5,350/MT, delivered Kandla
6. Aryan Ispat is trading 79 FeM pellet sponge at INR 13,500-13,600/MT ex-Jharsuguda (Odisha).
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