Indian sponge offers are decreasing continuously due to rising sellers as well as inventory levels in major markets like Raipur (Chhattisgarh), Rourkela (Odisha) and Bellary (Karnataka). Out of the total sponge (DRI) production in India, about 60-65% of material is produced in Chhattisgarh, West Bengal, Odisha and Karnataka.
Today, sponge market has opened with a price corrections of INR 100-300/MT across major markets. The major reason behind fall in prices is less number of buyers as compared to sellers amid poor sales of semis and long steels.
Trade Dynamics
1. Topworth Steel & Power, one of the largest manufacturer in Central India, offered 80 FeM P-DRI at INR 12,000 ex-plant (Chhattisgarh).
2. BMM Ispat in Karnataka offered 79-80 FeM C-DRI at INR 12,000/MT; reported poor demand. However, few other manufacturers traded the same material at INR 11,700/MT.
3. Sponge (P-DRI) offers in Raipur assessed at INR 12,000/MT and INR 10,600/MT ex-Jharsuguda (Odisha).
4. Sponge (DR-CLO lump) in Raipur is available at INR 14,000/MT ex-plant.
5. Odisha based manufacturers traded 80 FeM C-DRI at INR 12,000/MT to nearby states (CST billing).
6. C-DRI offers in Durgapur are assessed at INR 12,800/MT. But, buyers are willing to purchase at INR 12,500-12,600/MT.
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