Indian sponge prices today have corrected marginally by INR 50-150/MT. Currently, P-DRI is prevailing at INR 10,400-12,500/MT and C-DRI at INR 11,000-13,000/MT. Market participants reported that increase in selling pressure on sponge makers amid over production is the major reason for price corrections.
However, few positive sentiments are also reported in central Indian market. DR-CLO grade C-DRI offers in Raipur are assessed at INR 13,400-13,500/MT but only few deals are heard at this prices.
78-80 FeM C-DRI in the region is heard to available at INR 12,500-12,600/MT, but buyer prefer to buy Odisha based origin at INR 12,400-600/MT, FoR plant. Odisha manufacturers’ offers for 70% lump (80 FeM) are seen at INR 11,000/MT; up by INR 100/MT from previous day. However, few manufacturers in Raipur are heard to increase offers by INR 200/MT due to better outstation buying. But, no trade has been heard at this level.
West Bengal seller reported that pressure has increased on sponge prices than billet as billet makers have export buyers.
A sponge and billet manufacturer in West Bengal quoted, “We have export buyers for billet at INR 22,500-23,000/MT, but selling sponge is getting tougher at current prices.”
C-DRI offers are currently evaluated at INR 11,300-11,500/MT and P-DRI at INR 10,400/MT, with no major change in Durgapur. Billet prices today increased by INR 100/MT to INR 22,500/MT in the region.
A south based large sponge maker, BMM Ispat has decreased its offers further by INR 200/MT to INR 11,500-11,600/MT for 80 FeM P-DRI lump. Earlier, the manufacturer had reduced offers by INR 300/MT.
Today, the company’s official mentioned that increase in inventory of billet is a rising concern in local market and they may see further fall in prices, if demand doesn’t improves.
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