Today, domestic sponge market has registered a minor price corrections of INR 50-150/MT in east region. However, offers in south have remained firm.
Presently, 78-80 FeM C-DRI offers are hovering in the range of INR 10,600-12,700/MT and P-DRI within INR 10,250-12,400/MT.
A south based manufacturer, who produces 2,300 TPD sponge, quoted, “Though, demand is subdued in the market, supply crunch amid seasonal low production has maintained the prices at firm level.
Domestic sponge offers as on 14 Jul’16
| Particulars | C-DRI | D-o-D | P-DRI | D-o-D | Current Premium | 1 Week earlier Premium |
| Ex-Durgapur | 11,300 | – 150 | 10,250 | – 150 | 1,050 | 1,000 |
| Ex-Rourkela | 10,600 | – 50 | 0 | 0 | 0 | 0 |
| Ex-Raipur | 12,100 | + 50 | 10,950 | – 50 | 1,150 | 1,050 |
| Ex-Bellary | 11,600 | + 50 | 11,050 | + 50 | 550 | 450 |
| Ex-Hyderabad | 12,700 | 0 | 12,400 | 0 | 300 | 400 |
Prices in INR/MT
Source: SteelMint Research
Key highlights
1. P-DRI shortage continues in Raipur as only 2-3 big units are making material. However, few deals have been concluded yesterday to Jalna for PDRI at INR 11,000/MT and DR-CLO at INR 13,000/MT (ex-plant); freight via road is INR 1,250/MT.
2. Integrated plant in Odisha namely OCL Iron & Steel reduced offers to INR 10,700-10,800/MT for C-DRI and INR 19,000-19,100/MT for billet on ex-plant, Odisha basis.
3. Sources mentioned that few Durgapur based large manufacturers like Shyam Sel and Rashmi Metaliks cut sponge offers by INR 100/MT for today’s trade. Falling billet prices in the market is forcing manufacturers to cut sponge prices.
4. Karnataka based sponge manufacturer, BMM Ispat is offering 80 FeM P-DRI lump at INR 11,400-11,500/MT ex-works.
5. Shiv Shakti Steel, a 200 TPD sponge manufacturer in Hyderabad, offered 80 FeM C-DRI lump at INR 12,700/MT ex-plant. Also, it is offering billet at INR 21,500/MT ex-plant.
6. Prakash Sponge, a prime grade sponge maker in Karnataka, sold 80 FeM C-DRI lump at INR 12,000/MT. Few deals were concluded to Kerela. An another sponge manufacturer in the same region namely Yeshashvi Steel & Alloys is also offering the same material at INR 11,900-12,000/MT.
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