Stability Prevails in Indian Sponge Market

Domestic sponge market has remained stable today, but reported a minor price corrections of INR 150-200/MT majorly in Durgapur and Raipur.

Currently, 78-80 FeM C-DRI offers are hovering in the range of INR 10,500-13,000/MT and P-DRI within INR 10,250-12,600/MT.

Few Raipur based large manufacturers have kept their offers unchanged for P-DRI at INR 10,800-10,900/MT (ex-plant) despite fall in ingot/billet prices by INR 100-200/MT D-o-D.

While, a Durgapur based sponge price trend decider, Shyam Sel has reduced P-DRI offers by INR 100/MT to INR 10,300/MT. Meanwhile, the same material by few small size manufacturers are being offered at INR 10,200/MT. Manufacturers here mentioned that demand is subdued at current offers and they are trying to hold prices despite to reduce it.

Few Odisha based sponge manufacturers are selling 78-80 FeM C-DRI at INR 12,100-12,200/MT Raipur (landed). The state based manufacturers are offering the same grade C-DRI lump at INR 10,700-10,800/MT, ex-plant through CST billing and INR 10,500-10,600/MT by VAT billing.

However during last 10 days, south Indian market registered a price rise of INR 500-700/MT on account of few plants closure in the region. Post increase in offers, sellers have stopped selling sponge at less prices.

Sources mentioned that Karnataka based Minera Steel & Power has recently increase pellet offers by INR 150-200/MT.

Sponge manufacturers are hopeful for better demand in the coming days, looking at few plants closure in south & east India, which is likely to create supply crunch in the domestic market.

Prakash Sponge, a prime grade sponge manufacturer based Karnataka reported, a bulk deal has been concluded for C-DRI at INR 12,200/MT, which is around INR 500/MT higher than the last week offers.

A manufacturer from Bellary quoted, “Yesterday, we had sold 1,000 MT of C-DRI, but today we have less inquiries at similar offers”.

Premium between C-DRI and P-DRI in central India has narrowed down to INR 1,050/MT, which was INR 1,200/MT last week. In east region, it remained firm to INR 1,000/MT and south to INR 400/MT.