Indian Sponge Offers Gain Marginally

Today, sponge manufacturers have increased their offers by INR 50-300/MT, following rise in billet offers. However, buyers are steel cautious to purchase material at increased offers on prevailing volatile market. Sponge offers in south India have also surged by INR 50-100/MT.

Currently, sponge iron (C-DRI) prices are hovering in the range of INR 10,550-12,550/MT and P-DRI within INR 10,300-12,300/MT.

Domestic sponge offers as on 26 May’16

Prices in INR/MT
Source: SteelMint Research

Key highlights

1. As per buyers, Raipur based sponge manufacturers are selling material with a discount of INR 100-200/MT at offered prices. For an instance, C-DRI of 0-20 mm is offered at INR 12,000/MT, while, trade prices are assessed at INR 12,800-12,900/MT. Similarly, DR-CLO mix offers are assessed at INR 13,000/MT and trade prices at around INR 12,800/MT ex-plant.
2. Durgapur based few bulk manufacturers traded P-DRI at around INR 10,300/MT, with a price rise of INR 200/MT D-o-D.
3. Odisha based sponge manufacturer, Jay Jagannath Steel & Power (750 TPD) has offered 80 FeM C-DRI at INR 10,500-10,600/MT (VAT) and INR 10,700-10,800/MT (CST) ex-plant.
4. Amoda Steel & Iron, a 450 TPD sponge manufacturer based in Hyderabad, has offered 75 FeM C-DRI lump at INR 11,900-12,000/MT. While, another sponge maker, Shiv Shakti Steel offered 80 FeM C-DRI lump at INR 12,500/MT ex-plant.
5. BMM Ispat in Karnataka increased P-DRI offers by INR 100/MT to INR 11,400-11,500/MT. Few bulk deals concluded to Hyderabad.
6. Sources confirmed that Karnataka based sponge manufacturer, Prakash Sponge is mostly selling material (80 FeM C-DRI) to Hosur, Pondicherry and Kerela at INR 11,700-11,800/MT ex-works. Freight to Hosur is assessed at INR 800/MT, Pondicherry at INR 1,200-1,300/MT and Kerela at INR 1,600-1,700/MT. The company is also offering sponge iron fines of 75 FeM at INR 10,300/MT ex-works.