Sponge offers in central & eastern India gained slightly after they touched all time low levels in the month of May’16.
In the last 2 days, offers have moved up in central India. Raipur prices are up by INR 200/MT. And in eastern (Durgapur & Rourkela) offers have gone up by INR 100-600/MT. However in south (Karnataka) offers remain unaltered.
The lowest price levels of sponge iron were recorded in May’16. P-DRI prices were recorded at INR 10,550/MT in Raipur & INR 10,000/MT in Durgapur. While, C-DRI prices in were Raipur at INR 11,950/MT , Durgapur at INR 11,000/MT and Rourkela at INR 10,100/MT (ex-works).
Today, Shyam Sel and Power Ltd a market price indicator in West Bengal has increased P-DRI offers by INR 200-300/MT. The company has mentioned “Offers have increased due to shortage of material as few large & medium sponge units have halted production.”
Similarly in Rourkela market participants reported that few large sponge manufacturers have shut down their kiln on the backdrop of low conversion spread.
Sponge offers in southern India (Karnataka) remain firm. Trade sources reported that presently outstation buying is null. Karnataka majorly supplies sponge to neighboring states i.e. Maharashtra, Telangana and Tamil Nadu. In this week billet offers in Mumbai, Hyderabad & Chennai reduced by INR 400-600/MT.
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