Sponge makers across India, especially from central and south India are seeking for buyers. Sponge prices across major Indian markets have declined steeply by upto INR 1,500/MT in Jan’16.
Manufacturers across India reported that the smelters are worried about the market’s volatile sentiments. One of the prime reason behind this is also financial liquidity in the market.
At present, east India based manufacturers (Odisha) are selling sponge iron (C-DRI) to Chhattisgarh, Maharashtra, Punjab including north east regions at approx INR 11,300-11,500/MT ex-plant. CG sellers are less aggressive compared to Raigarh and Rourkela makers. In addition, trade activities in the city are seem to be limited.
South based sponge suppliers have hit by east India’s aggressive offers to established western based smelters plant. Sponge (C-DRI & P-DRI) offers are cheaper in Odisha (east India) by approx INR 1,000/MT as compared to Karnataka (south India), a market participant shared with SteelMint.
Plant-wise offers of 18 Jan’16
1. 80 FeM C-DRI (mix) offered by Rourkela (Odisha) based manufacturers at INR 11,400-11,500/MT ex-plant; CST billing.
2. 80 FeM C-DRI (mix) in Chhattisgarh offered at INR 12,800-13,100/MT. Major deals were heard at INR 12,800-12,900/MT for lump on advance payment basis.
3. A Bhilai based P-DRI manufacturer sold 80 FeM P-DRI (lump) at INR 11,700/MT to west India.
4. Prakash Sponge offered 78 FeM C-DRI lump at INR 12,400/MT ex-plant (Karnataka).
5. BMM Ispat offered 80 FeM P-DRI at INR 11,450/MT ex-plant (Karnataka).
6. Shyam Metalics from Durgapur traded P-DRI at INR 11,100-11,200/MT.
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