Today, domestic sponge market opened with thin price change of INR 50-200/MT against last day trade. While, south market opened with firm offers.
Manufacturers from east & south India quoted, “We are planing to curtail production to meet demand supply chain as higher stock forcing us to reduce offers day-by-day. We are unable to run units with current cost of production and cheaper selling prices.”
Currently, 78-80 FeM sponge C-DRI prices are hovering in the range of INR 10,700-13,000/MT and P-DRI within INR 10,000-12,500/MT ex-plant.
Domestic sponge offers as on 12 May’16
| Particulars | C-DRI | D-o-D | P-DRI | D-o-D | Current Premium | 1 Week earlier Premium |
| Ex-Durgapur | 11,050 | – 200 | 10,000 | – 200 | 1,050 | 1,150 |
| Ex-Rourkela | 10,700 | – 100 | 0 | 0 | 0 | 0 |
| Ex-Raipur | 12,400 | – 100 | 10,900 | – 100 | 1,500 | 1,450 |
| Ex-Bellary | 11,700 | – 50 | 11,200 | 0 | 500 | 550 |
| Ex-Hyderabad | 13,000 | 0 | 12,500 | 0 | 500 | 750 |
Prices in INR/MT
Source: SteelMint Research
Key Highlights
1. Raipur based integrated plants namely Sarda Energy & Bajrang Ispat have reduced offers for P-DRI lump by INR 100-200/MT to INR 10,800/MT ex-plant. But, buyers are not interested to purchase material at this offer.
2. Odisha based sponge manufacturer, Pooja Sponge (200 TPD) is offering 80 FeM C-DRI at INR 10,500-10,600/MT (VAT) and INR 10,700-10,900/MT (CST) ex-plant.
3. Reactive Metals of India reduced offers; offering 80 FeM P-DRI lump at INR 12,500/MT ex-plant (Hyderabad).
4. Shiv Shakti Steel, a 200 TPD sponge manufacturer in Hyderabad, is offering 80 FeM C-DRI lump at INR 13,000/MT ex-plant.
5. Prakash Sponge, a prime grade sponge maker from Karnataka, closed its sales for C-DRI due to huge bookings at INR 12,000/MT. An official mentioned, sales will re-open post earlier booking get completed. Mostly deals were concluded to Hindupur.
6. BMM Ispat, an bulk sponge producer in Karnataka, kept offers unchanged; 80 FeM P-DRI is available at INR 11,500/MT.
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