Secondary sponge makers this week continue to be under stress because of lull trading activities across major Indian markets. Sponge prices have dipped sharply by INR 500-750/MT W-o-W.
Current 78-80 FeM C-DRI offers are assessed at INR 11,300/MT ex-Durgapur, INR 10,400/MT ex-Rourkela, INR 12,200/MT ex-Raipur and INR 12,100/MT ex-Bellary.
In context to raw material, NMDC has recently reduced iron ore lump prices by INR 300-360/MT. However, the company has kept fines prices unchanged. Other miners have started to follow suit as Serajuddin today cut lump prices by INR 150/MT and KMC by INR 400/MT.
The future of semi finish market is still up in the air. However, viewing the persistent fall in iron ore lump prices, it seems that sponge iron prices may decline further in near term.
Trade-wise
1. Sponge DR-CLO offers down in Raipur; current offers are assessed at INR 13,200/MT (0-20 mm; ex-works).
2. ILC Iron & Steel is offering 80 FeM P-DRI lump at INR 11,700-800/MT ex-works (Karnataka).
3. Maharashtra based rolling mills are buying ingot/billet from Raipur due to cheaper offers. Freight to Jalna is INR 1,300-1,400/MT and to Mumbai is INR 1,600-1,700/MT.
4. Odisha based manufacturers are mostly selling sponge to Maharashtra and Chhattisgarh.
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