Indian sponge prices have remained muted with a marginal change of INR 50-100/MT today. However, manufacturers are still facing selling pressure owing to limited buying.
Today, domestic sponge market opened with a thin price change of INR 50-100/MT against the last day trade. While, offers in south remain unchanged.
Manufacturers from south region quoted, “No inquiries from buyers end have been received yet. Currently, market is in muted condition and still on lower side.”
At present, sponge iron (C-DRI) prices are hovering in the range of INR 10,600-12,600/MT and P-DRI prices within INR 10,400-12,200/MT.
Reduction in iron ore prices by Odisha and Chhattisgarh based miners has provided some relief to domestic sponge makers as earlier they were tussling with high raw material costing. An Odisha based biggest miner has cut lump prices by INR 150/MT. Meanwhile, Chhattisgarh based NMDC has reduced prices by INR 180-230/MT for Jun’16 deliveries.
Domestic sponge offers as on 2 Jun’16
| Particulars | C-DRI | D-o-D | P-DRI | D-o-D | Current Premium | 1 Week earlier Premium |
| Ex-Durgapur | 11,400 | + 100 | 10,400 | + 100 | 1,000 | 1,000 |
| Ex-Rourkela | 10,600 | 0 | 0 | 0 | 0 | 0 |
| Ex-Raipur | 12,200 | – 100 | 11,000 | + 50 | 1,200 | 1,250 |
| Ex-Bellary | 11,450 | + 50 | 11,100 | 0 | 350 | 350 |
| Ex-Hyderabad | 12,600 | 0 | 12,200 | 0 | 400 | 250 |
Prices in INR/MT
Source: SteelMint Research
Key highlights
1. Only 3 merchant sellers are offering P-DRI in Raipur, which in turn is supporting prices. Offers for P-DRI are assessed at INR 11,000/MT and DR-CLO mix material at INR 12,900-13,200/MT. Few deals have concluded for DR-CLO 0-20 mm at INR 12,800/MT. Odisha is offering C-DRI at INR 12,100/MT, FoR Raipur
2. Sponge (78 FeM C-DRI ) offers in Durgapur are on positive side and trade higher by INR 100/MT at INR 11,400/MT.
3. Bhaskar Steel and Ferro Alloy is offering 80 FeM C-DRI lump at INR 10,900/MT and billet at INR 20,500/MT ex-plant, Odisha through CST billing.
4. Jay Jagannath Steel & Power based in Odisha is offering 80 FeM C-DRI lump at INR 11,000/MT ex-plant; few deals have concluded at INR 11,200/MT to north market.
5. Reactive Metals has kept its offers unchanged for 80 FeM P-DRI lump at INR 12,200/MT ex-plant (Hyderabad). An another sponge manufacturer from the same city namely, Shiv Shakti Steel is offering the same grade C-DRI lump at INR 12,600/MT ex-plant.
6. BMM Ispat, a bulk sponge supplier in Karnataka, has increased its offers by INR 100/MT to INR 11,500-11,600/MT for 80 FeM P-DRI lump. While, ILC Iron & Steel (350 TPD) is offering 80 FeM P-DRI lump at INR 11,400/MT ex-plant.
7. Prakash Sponge has traded 80 FeM C-DRI lump at INR 11,800/MT and 75 FeM fines at INR 10,300/MT ex-plant, Karnataka.
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