Indian Sponge Market Finds Support

Indian sponge market finds support post prices hit an all time low levels. Manufacturers reported demand is supportive at present.

Today, domestic sponge market opened with a minute price change of INR 50/MT against last day trade.

Presently, 78-80 FeM sponge iron (C-DRI) prices are hovering in the range of INR 10,800 – 12,800/MT and pellet sponge (P-DRI) within INR 10,500-12,400/MT ex-plant.

Raipur based integrated plants have increased P-DRI offers for general purchase. While, they are providing discount on bulk purchase. For an instance, P-DRI in bulk is being sold at INR 10,900-11,000/MT and in general, it is available at INR 11,000-11,100/MT. Induction operators are here worried on increasing sponge prices and declining ingot/billet prices as it’s directly affecting their margins.

Odisha based few primary sponge manufacturers like Reliable Sponge and Bhaskar Steel has reported supply crunch of sponge iron in the market due to seasonal low production. The plants have concluded few deals for 80 FeM C-DRI (70:30) mix material at INR 10,800/MT in local market and also sold material to outside states at INR 11,000/MT on ex-plant basis. However, few another small manufacturers are also offering the same material at low price of INR 100-200/MT via VAT billing.

Durgapur based sponge manufacturers reported better demand of sponge iron, which in turn has maintained offers firm at INR 11,500/MT for C-DRI and INR 10,500/MT for P-DRI.

While, South based manufacturers are in relief as they had sold bulk quantities at increased prices in the previous week. At present, offers for 80 FeM P-DRI are in the range of INR 11,300-11,500/MT and the same grade C-DRI is available at INR 11,800-12,000/MT (ex-plant). While, billet offers in Hyderabad fell by INR 300/MT to INR 21,500/MT, which in turn may impact sponge prices in days to come.

A furnace owner based in Goa reported to get P-DRI offers at INR 11,200/MT, but they are asking the material at INR 11,000/MT ex-Bellary.

Premium between C-DRI and P-DRI in central India has increased to INR 1,100/MT, which was INR 950/MT in last week. In east region, it remained firm to INR 1,000/MT, but in south increased to INR 400-550/MT.