Indian sponge prices fell by INR 50-300/MT D-o-D and INR 250/MT W-o-W on account of weak buying activities.
Durgapur, West Bengal based sponge makers mentioned that they will not reduce offers below INR 10,000/MT for P-DRI and INR 11,000/MT for C-DRI. Higher raw material offers (production cost) and cheaper selling prices are forcing them to either sell material at current offers or to hold sales.
C-DRI offers in Raipur are assessed at INR 12,000/MT and DR-CLO at INR 13,100/MT for mix-material (0-20 mm) ex-plant. P-DRI makers reported that buyers are expecting material INR 200/MT lesser than offered price. Induction operators are waiting for further corrections to purchase raw material (sponge).
Producer sources from east India, Odisha quoted, “ At this stage, we reduced our production to 60% capacity to meet demand-supply chain as higher stock and dull market situations are forcing us to cut production as well as offers. As of now, just hoping for market recovery”.
Similar situation is witnessed in south sponge market as manufacturers are under pressure to complete previous bookings, which is mostly for Hindupur and Silvasa regions. A prime grade sponge maker from the same region namely Prakash Sponge reported that few deals concluded to Hosur, Pondicherry and Kerela for 80 FeM C-DRI lump at INR 11,700-11,800/MT (ex-plant). While, an another bulk sponge producer, BMM Ispat mentioned, about 10,000 MT pellet sponge is sold at an average price of INR 11,300-11,400/MT till date to nearby markets.
SteelMint in conversation with manufacturers assessed that they are worried about the sales and higher cost of production. Premium between C-DRI and P-DRI also decreased in central India by INR 200-250/MT to INR 1,400/MT. However in east & south regions, it remained stable at INR 1,000/MT and INR 200-300/MT respectively.
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