Looking at current price levels, SteelMint has assessed that premium between C-DRI (sponge iron) and P-DRI (pellet sponge) has narrowed down to INR 800-1,500/MT from earlier INR 1,500-2,000/MT. The major factor of reduced price gap is that most of the sponge makers have shifted towards iron ore lumps over pellet; leading to increased production of C-DRI.
Current offers for C-DRI in Raipur are assessed at INR 15,100/MT and P-DRI at INR 13,550/MT.
In last one month, iron ore miners have reduced prices by INR 800/MT, but pellet manufacturers did not cut their offers in line. As a result, sponge makers began prefering lumps over pellets.
Current price for sponge grade (5-18 mm) iron ore lumps is hovering in the range of INR 3,000-3,200/MT (loaded to wagons, including royalty) and pellet offers for same grade are over INR 4,000/MT in Barbil, Odisha.
Current C-DRI & P-DRI Prices with Premium
| Particular | Grade (FeM) | C-DRI | W-o-W | P-DRI | W-o-W | Premium (C-DRI – P-DRI) |
| Ex-Duragpur | 78 | 14,000 | -900 | 12,800 | -1,000 | 1,200 |
| Ex-Rourkela | 78 | 14,000 | -500 | 13,200 | -200 | 800 |
| Ex-Raipur | 80 | 15,100 | -550 | 13,550 | -550 | 1,550 |
| Ex-Bellary | 78 | 13,600 | -200 | 12,800 | -200 | 800 |
Prices in INR/MT
Source: SteelMint Research
Trade-wise
1. Imported South African lumps (65% Fe, 6-20mm) sold at USD 67/MT for ready delivery and USD 68/MT for October delivery on CFR Kandla Port basis
2. Imported South African 5500 NAR coal offers are at around USD 50/MT, CFR India main port
3. Imported shredded scrap offers are assessed at USD 220/MT, CFR India
4. Arya Iron and Steel sold about 8,000 MT pellets at INR 3,900/MT (loaded to wagons, Barbil)
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