Indian sponge prices uptick by INR 50-100/MT in east & central India. However, it remained stable in south.
Today, Indian sponge market has opened with a positive note as central & east Indian offers have gained by INR 50-150/MT. While, offers in south remain unchanged due to stability in billet market. Current sponge iron (C-DRI) offers are assessed in the range of INR 10,700-12,700/MT and P-DRI within INR 10,600-12,400/MT.
Sponge offers in Raipur are strong due to limited merchant sellers in the market. Also, improved buying to outside states has supported sponge market here. In this week, few deals have been concluded for P-DRI to Jalna at INR 10,900-11,000/MT (ex-plant); freight is around INR 1,250/MT via road.
Shyam Sel, a Durgapur based large sponge supplier, has increased offers today by INR 100/MT to INR 10,600/MT for P-DRI and INR 11,600/MT for C-DRI. The plant has reported strong buying at these prices.
Bhaskar Steel in Odisha reported, C-DRI was sold in bulk quantity at INR 10,900/MT yesterday. However as per suppliers, few another prime grade sponge manufacturers are offering material at above INR 11,000/MT ex-plant for outside state based buyers. In the same line, a trader based in Jalna (Maharashtra), who is also an induction operator, confirmed to purchase C-DRI lump from Rourkela at INR 11,200/MT (ex-plant) yesterday.
Bellary (Karnataka) based sponge market has remained steady. At present, offers for 80 FeM P-DRI are in the range of INR 11,300-11,400/MT. While, the same grade C-DRI is available at INR 11,800-12,000/MT ex-plant in the region. Billet prices in the market also remain unchanged to INR 20,500-21,000/MT and Hyderabad at INR 21,500/MT.
A south based manufacturer quoted, “Stability may continue in the market on account of firm imported scrap and coal offers.”
Premium between C-DRI and P-DRI in central India has increased by INR 100/MT to INR 1,150/MT against last week. In east region, it remained firm to INR 1,000/MT, but in south decreased to INR 300-500/MT.
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