Today, domestic sponge market has almost remained firm, with minor price fluctuations of INR 100/MT in few regions. However in south market, prices have corrected by INR 100-300/MT.
Currently, 78-80 FeM C-DRI offers are hovering in the range of INR 11,300-13,500/MT and P-DRI within INR 11,000-13,000/MT.
A major producer of sponge iron, Odisha has reported sluggish demand of sponge iron on account of halt in material supply to Raigarh state amid no power supply in Punjipatra area based in Raigarh.
Few Odisha based manufacturers stated to SteelMint that amid surplus availability of sponge iron, the local market remained dull. The state based manufacturers are offering 80 FeM C-DRI at INR 11,300-400/MT ex-plant through CST billing.
However, the same grade material is being traded at INR 12,700-900/MT (ex-plant) in Raipur, INR 12,000/MT in Durgapur (West Bengal) and INR 12,000-200/MT in Bellary (Karnataka).
On the flip side, south based sponge market has registered a fall of INR 300/MT against last day closing. Manufacturers here are saying that lack of demand from buyers has pushed them to sell the material at low price.
Currently, they have sold 78 FeM C-DRI at INR 12,000/MT, which is around INR 500/MT lower than previous two weeks’ offers.
Domestic sponge offers as on 12 Apr’16
| Particular | C-DRI | D-o-D | P-DRI | D-o-D | Current Premium | 1 Week Earlier Premium |
| Ex-Durgapur | 12,000 | +50 | 11,000 | +50 | 1,000 | 1,000 |
| Ex-Raipur | 12,800 | 0 | 11,600 | -150 | 1,200 | 1,150 |
| Ex-Rourkela | 11,300 | 0 | 0 | 0 | 0 | 0 |
| Ex-Bellary | 12,000 | -350 | 11,700 | -150 | 300 | 500 |
| Ex-Hyderabad | 13,500 | -100 | 13,000 | 0 | 500 | 500 |
Prices in INR/MT
Source: SteelMint Research
Other major trade highlights
1. A Raipur based P-DRI maker sold FeM 78 mix grade at INR 11,400/MT and 80 FeM at INR 11,600/MT.
2. DR-CLO in Raipur is heard to sold at INR 13,600/MT (0-20 mm) and lump at INR 13,900/MT.
3. Karnataka based Prakash Sponge has offered 78 FeM C-DRI lump at INR 12,000/MT and 75 FeM fines at INR 10,800/MT ex-plant.
4. BMM Ispat from Karnataka reduced offers by INR 300-400/MT. Current offers for 80 FeM P-DRI lump is at INR 12,000/MT ex-plant
5. Hyderabad based Shiv Shakti Steel, a 200 TPD sponge manufacturer, has offered 80 FeM C-DRI lump at INR 13,500/MT ex-plant.
6. Amoda Iron & Steel offered 75 FeM C-DRI lump at INR 13,300/MT ex-plant (Hyderabad).
7. Kaushal Ferro in Odisha has traded 80 FeM C-DRI at INR 11,500/MT ex-plant and INR 12,600/MT landed to Raipur.
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