Indian sponge offers have remained firm today. While, billet market reported a price corrections of INR 200/MT.
Today, sponge manufacturers have reported minute price corrections of INR 50-100/MT against the last day trade. While, offers in south remain under pressure due to weak trade movements.
A market participant in Rourkela quoted, “Sponge trade movements continue to be weak. Also, we are not interested to sell our material below production cost, thus, planning to close sales”.
Currently, sponge iron (C-DRI) prices are hovering in the range of INR 10,200-12,600/MT and P-DRI within INR 10,200-12,200/MT.
Domestic sponge offers as on 16 Jun’16
| Particulars | C-DRI | D-o-D | P-DRI | D-o-D | Current Premium | 1 Week earlier Premium |
| Ex-Durgapur | 11,200 | -100 | 10,200 | -100 | 1,000 | 1,150 |
| Ex-Rourkela | 10,200 | – 50 | 0 | 0 | 0 | 0 |
| Ex-Raipur | 11,900 | – 100 | 10,800 | 0 | 1,100 | 1,300 |
| Ex-Bellary | 11,400 | – 50 | 11,000 | -50 | 400 | 450 |
| Ex-Hyderabad | 12,600 | 0 | 12,200 | – 100 | 400 | 250 |
Prices in INR/MT
Source: SteelMint Research
Current key highlights
1. Few large manufacturers in Raipur have kept offers unchanged for P-DRI at INR 10,800/MT. While, they have reduced offers for C-DRI and DR-CLO to INR 11,800/MT and INR 12,700-12,800/MT respectively. The manufacturers are not getting enquiries from outside state buyers as offers by Odisha & Karnataka based manufacturers are quite cheaper.
2. Durgapur based manufacturers are selling sponge to Guwahati. Few deals for C-DRI are heard at INR 11,200/MT (ex-plant); freight via road is INR 2,500/MT.
3. Few Odisha based sponge makers closed their sales due to low selling price and high cost of production. Presently, Bhaskar Steel and Ferro Alloy is offering 80 FeM C-DRI lump for outside state buyers at INR 10,500/MT ex-plant.
4. Reactive Metals of India reduced its offers for 80 FeM P-DRI lump by INR 100/MT to INR 12,200/MT ex-Hyderabad. An another sponge manufacturer from the same place namely Shiv Shakti Steel is offering the same grade C-DRI lumps at INR 12,600/MT ex-plant.
5. BMM Ispat is having capacity to produce 2,300 TPD sponge. The company is offering 79 FeM P-DRI lump at INR 11,200-11,300/MT. While, ILC Iron & Steel (350 TPD) is offering 80 FeM P-DRI lump at INR 11,300-11,400/MT ex-plant.
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