In the ongoing week, sponge iron market has witnessed price correction of INR 100-600/MT across major markets.
Increased production of sponge and low input cost of iron ore and coal are pressurizing sponge iron prices. Trade sources anticipate further fall in prices due to continuous fall in Odisha iron ore offers.
In a month, miners in Odisha have reduced iron ore lumps prices by INR 1,500/MT; whereas, pellet prices remain marginally down by INR 100-200/MT. This has lent a good opportunity to sponge makers to increase C-DRI production. Thus, most of the manufacturers have shifted to produce C-DRI, leading to narrowed price gap between C-DRI and P-DRI to INR 1,000/MT from earlier INR 1,400-1,700/MT.
Current price movement across major markets are: Durgapur at INR 14,900/MT (78 FeM; -600), Rourkela at INR 14,500/MT (78 FeM; 0), Raipur at INR 15,650/MT (80 FeM; -550), Bellary at INR 13,800/MT (78 FeM; -200) and Hyderabad at INR 15,750/MT (82+ FeM; -50).
Current semi finish and raw material prices
|
Products |
Particular | Grades | Prices | 1W | 1M |
3M |
| Iron ore | Rungta Mines* | 5-18 mm, Fe 63% |
3,150 | 3,267 | 4,650 | 4,950 |
| Pellet | Ex-Raipur | 6-20 mm, 63% | 5,150 | 5,300 | 5,100 | 5,700 |
| Pellet | Ex-Durgapur | 6-20 mm, 63% | 4,900 | 5,200 | 4,750 | 4,850 |
| C-DRI | Ex-Raipur | 80 +/- FeM | 15,750 | 16,200 | 16,150 | 16,100 |
| C-DRI | Durgapur | 78 FeM | 15,000 | 15,500 | 15,750 | 15,100 |
| P-DRI | Ex-Raipur | 80 +/- FeM | 14,350 | 14,650 | 14,400 | 14,350 |
| P-DRI | Durgapur | 78 FeM | 14,000 | 14,500 | 14,500 | 13,200 |
Prices in INR/MT *loaded to wagons
Source: SteelMint Research
Leave a Reply