Anticipated safeguard duty imposition has led to hike in Indian sponge iron prices. However, south market remained under pressure this week.
Domestic sponge market across India has shown some recovery as prices have gained steeply by INR 600-800/MT in a week. Improvement in demand from finished long steel market and expected imposition of safeguard duty on steel products have supported sponge market for its recovery.
However, there is no impact on south market as manufacturers are still under pressure and slumped their offers by INR 500-700/MT for 78-82 FeM C-DRI. At present, 78-80 FeM C-DRI is trading at INR 12,000/MT ex-Durgapur, INR 12,500/MT ex-Raipur, INR 11,000/MT ex-Rourkela and INR 11,600/MT ex-Bellary.
Meanwhile, pellet sponge prices have also risen by INR 200-700/MT in domestic market. Currently, 78-80 FeM P-DRI is available at INR 11,000/MT ex-Durgapur, INR 11,250/MT ex-Raipur, INR 11,000/MT ex-Bellary and INR 12,500/MT ex-Hyderabad.
Raw iron pellet prices in central and south India have declined by INR 150/MT W-o-W. However, despite limited buying, pellet manufacturers in east India are unwilling to lower their offers. Pellet prices in east India are already quite low and availability of cheaper lump has further worsened the pellet market.
C-DRI and P-DRI with premium as on 8 Dec’15
| Particular | C-DRI (FeM) | W-o-W | P-DRI (FeM) | W-o-W | Premium |
| Ex-Durgapur | 12,000 (78) | +700 | 11,000 (78) | +700 | 1,000 |
| Ex-Rourkela | 11,000 (78) | +600 | NA | NA | NA |
| Ex-Raipur | 12,500 (80) | +300 | 11,250 (80) | +250 | 1,250 |
| Ex-Bellary | 11,600 (78) | -500 | 11,000 (78) | -200 | 600 |
Prices in INR/MT
Source: SteelMint Research
Leave a Reply