Indian sponge makers have kept their offers unchanged amid low buying interest by induction operators.
Sluggish demand has been continuously pressurizing medium size sponge makers, in turn led to increased inventory levels, mostly in east India i.e. West Bengal and Odisha. India’s east region is the largest sponge producer across the country, which supplies material to all over India.
Current offers for 78-80 FeM C-DRI in central India are assessed at INR 12,000-12,700/ MT, east at INR 11,200-12,000/MT and in south at INR 12,000-12,500/MT. While, the same grade P-DRI offers are prevailing in the range of INR 11,000-13,000/MT (ex-works/plant) in domestic market.
Highlights
1. South based sponge makers reported better demand on account of improved long steel sales from nearby states i.e. Kerala. They also mentioned that currently they are focusing to dispatch previous bookings to Hindupur and Silvasa (Maharasthra) region.
2. Odisha is selling sponge to Ghaziabad, Jalna and Nagpur; few deals have concluded at around INR 11,700/MT (C-DRI, 80 FeM lumps).
3. BMM Ispat heard to sell 80 FeM P-DRI at below INR 12,000/MT due to lower offers by Raipur based manufacturers for the same grade material at INR 11,100-11,200/MT.
4. Bhaskar Steel is offering 80 FeM C-DRI at INR 11,400/MT and billet at INR 21,700-21,800/MT ex-Bonai (Odisha) through CST billing.
5. Premium between P-DRI and C-DRI has widened in Durgapur to INR 1,100-1,200/MT from earlier INR 900-1,000/MT due to ample availability of P-DRI in the market.
6. Iron ore prices are yet to declare next week for May’16 deliveries. It is assumed that miners will open prices with some corrections.
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