Today, domestic sponge market opened with minor price rise of INR 50-150/MT against last day trade. Although, manufacturers reported increase in sales inquiries and trade volume, prices moved up marginally on account of high inventory in plants.
A Raipur based manufacturer reported sales of C-DRI DR CLO grade lump at INR 13,000-13,100/MT. Moreover, demand from north and west India is heard to be positive.
Manufacturers from east India quoted, “Prices increased by 100-200/MT in a day because of healthy trades and movement of sponge & billet to north India. Suppliers, who were earlier reluctant to sell their material at low cost, now pay off well”.
South India based manufacturers reported to SteelMint that demand is firm with positive direction in the market, as billet offers in south India increased by INR 500/MT in last 2 days.
Currently, 78-80 FeM sponge C-DRI prices are hovering in the range of INR 10,700-12,600/MT and P-DRI within INR 10,250-12,500/MT ex-plant.
Domestic sponge offers as on 19 May’16
| Particulars | C-DRI | D-o-D | P-DRI | D-o-D | Current Premium | 1 week earlier Premium |
| Ex-Durgapur | 11,350 | + 150 | 10,250 | + 50 | 1,100 | 1,000 |
| Ex-Rourkela | 10,700 | + 100 | 0 | 0 | 0 | 0 |
| Ex-Raipur | 12,300 | + 100 | 10,850 | 0 | 1,450 | 1,600 |
| Ex-Bellary | 11,550 | + 50 | 11,100 | + 50 | 450 | 500 |
| Ex-Hyderabad | 12,600 | 0 | 12,500 | 0 | 100 | 500 |
Prices in INR/MT
Source: SteelMint Research
Key highlights
1. A Raipur based integrated seller sold P-DRI at INR 10,800-10,900/MT
2. Singhal Steel, a large semi finish maker with current billet production of 600 MT per day in Raigarh, is offering C-DRI (0-20 mm) at INR 11,500/MT and billet at INR 21,000/MT ex-plant, an official reported.
3. Monnet Ispat (Raigarh) sold C-DRI fines at INR 11,200/MT and lump at INR 11,400/MT ex-plant yesterday, few sponge agents reported.
4. Durgapur based Rashmi Metaliks heard to close its sales for P-DRI post conclusion of few bulk deals at around INR 10,200/MT.
5. Odisha based sponge manufacturer, Pooja Sponge (200 TPD) is offering 80 FeM C-DRI at INR 10,700/MT (VAT) and INR 10,900/MT (CST) ex-plant. While another sponge maker, Jay Jagannath Steel & Power (750 TPD) sold 80 FeM C-DRI lump at INR 10,900/MT (CST) ex-plant.
6. Reactive Metals (Hyderabad) reduced offers for 80 FeM P-DRI lump to INR 12,500/MT ex-plant.
7. Shiv Shakti Steel, a 200 TPD sponge manufacturer in Hyderabad, is offering 80 FeM C-DRI lump at INR 12,500/MT ex-plant.
8. ILC Iron & Steel, a sponge maker from Karnataka, closed its sales for C-DRI due to huge bookings at INR 11,500/MT. An official mentioned, sales will re-open post earlier booking get completed.
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