Albeit post Diwali market has opened with positive sentiments, domestic sponge iron prices this week have declined across major markets. Two prime sponge markets, Durgapur and Raipur have witnessed major downfall of INR 500/MT W-o-W on account of dwindling demand from finished steel market.
However, other markets like Rourkela and Bellary have remained almost firm with minor correction of INR 200/MT in a week.
Similarly, pellet sponge prices in Durgapur and Raipur have fallen by INR 500/MT and INR 350/MT respectively despite pellet prices remained stable in domestic market.
Currently, 78 FeM C-DRI offers are assessed at INR 12,100/MT ex-Durgapur, INR 11,400/MT ex-Rourkela and INR 12,600/MT ex-Bellary. Meanwhile, 78-80 FeM P-DRI prices are hovering in the range of INR 11,100-12,700/MT across Indian market.
Persistent decline in sponge prices have forced iron ore manufacturers in Odisha to reduce their prices. Besides, merchant miners in Odisha have been asked to raise iron ore dispatches in order to achieve the laid target. The miners have reduced iron ore lump and fines prices by upto INR 350/MT this week.
Viewing at dearer iron pellet, south India based sponge makers had planned to go for strike. In this context, a meeting between the state government and Sponge Iron Association of Karnataka was held today and they have decided to take a proper action in coming two weeks.
Current C-DRI and P-DRI prices with premium gap
| Particular | Grade (FeM) | C-DRI | W-o-W | P-DRI | W-o-W | Premium (C-DRI – P-DRI) |
| Ex-Duragpur | 78 | 12,100 | -550 | 11,100 | -500 | 1,000 |
| Ex-Rourkela | 78 | 11,400 | -250 | NA | NA | NA |
| Ex-Raipur | 80 | 12,900 | -500 | 11,750 | -350 | 1,150 |
| Ex-Bellary | 78 | 12,600 | -200 | 11,450 | -150 | 1,150 |
Prices in INR/MT
Source: SteelMint Research
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