Indian sponge market, which had been subdued since a quite long time, has got some relief as prices have increased steeply in south Indian market this week. Prices have gained by upto INR 1,000/MT compared to last week.
High imported scrap offers is supporting sponge buying even at higher rates. Presently in Bellary, P-DRI is being quoted at INR 13,000/MT and C-DRI at INR 13,500-13,600/MT.
Southern market trade-wise
1. BMM Ispat, a bulk sponge producer, has closed its sales due to overbooked material. Few deals for 80 FeM P-DRI lump were concluded at INR 12,500-600/MT, ex-Bellary.
2. Amoda Iron & Steel Ltd is offering 75 FeM C-DRI lump at INR 13,300/MT ex-Hyderabad.
3. Shiv Shakti Steel reported to have concluded few deals at INR 14,000/MT ex-Hyderabad for 80 FeM C-DRI lump, with a price rise of INR 500/MT.
4. Prakash Sponge, a prime grade sponge maker, is likely to open its prices with a hike of INR 400-500/MT. Few deals were concluded at INR 12,800-13,000/MT for 78 FeM C-DRI lump.
Prices continue to remain under pressure in central and east India
Demand for sponge iron in central and east India remained low as compared to billet. The major reason behind this is higher sponge inventory in ingot/billet units. Also, sponge buying in north and west India has delayed due to increase in freight charges, which is due to limited availability of logistic vehicles.
Freight charges from Durgapur to Gobindgarh increased by INR 300-400/MT to INR 2,800-2,900/MT and from Raipur to Maharashtra by INR 200-300/MT to INR 2,000-2,200/MT.
Sponge prices as on 10 Feb’16 with premium
| Particular | C-DRI | W-o-W | P-DRI | W-oW | Premium | Premium a week earlier |
| Ex-Durgapur | 13,150 | -150 | 12,200 | 0 | 950 | 1,100 |
| Ex-Raipur | 13,250 | -50 | 12,100 | -300 | 1,150 | 900 |
| Ex-Bellary | 13,200 | 950 | 12,600 | 950 | 600 | 600 |
| Ex-Hyderabad | 14,000 | NA | 13,500 | 1,000 | 500 | NA |
| Ex-Rourkela | 11,500 | -400 | NA | NA | NA | NA |
Basic prices in INR/MT
Source: SteelMint Research
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