Sponge iron across Indian markets is being traded at similar levels a day before, with a minute price change of INR 50-150/MT D-o-D. Sources reported that short supply of material amid monsoon is supporting sponge manufacturers to maintain their offers at current levels.
Today, 78-80 FeM C-DRI prices are accessible in the range of INR 11,200-13,200/MT and P-DRI within INR 11,000-12,900/MT ex-plant.
Market players also mentioned that the strike of Raipur based induction furnace operators against high power tariff has not affected sponge market till now. With the Chhattisgarh government’s step for power tariff reduction by INR 1.40/unit (including VCA charges), it seems that demand may improve in coming days amid resumption of plants’ operation.
A sponge manufacturer in Odisha quoted, “Till now, there is no impact of strike done by Raipur based induction operators. Prices are supportive due to short supply of material in domestic market. It is hopeful that demand may pick up the pace post resumption of Raipur based induction furnaces’ operation.”
Domestic sponge offers as on 11 Aug’16
| Particulars | C-DRI | D-o-D | P-DRI | D-o-D | Current Premium | 1 Week earlier Premium |
| Ex-Durgapur | 12,000 | – 100 | 11,000 | – 150 | 1,000 | 1,000 |
| Ex-Rourkela | 11,200 | 0 | 0 | 0 | 0 | 0 |
| Ex-Raipur | 12,400 | + 100 | 11,200 | – 50 | 1,200 | 1,200 |
| Ex-Bellary | 12,200 | +100 | 11,600 | 0 | 550 | 600 |
| Ex-Hyderabad | 13,200 | 0 | 12,900 | + 50 | 300 | 400 |
Prices in INR/MT
Source: SteelMint Research
Today’s major trade dynamics
1. Offers in Raipur have went up by INR 100/MT due to operation resumption by ingot/billet manufacturers. As per trade sources, prices are likely to go up further as demand is expected to improve post called-off strike by induction furnaces operators.
2. Durgapur based manufacturers have reduced offers slightly by INR 100/MT to INR 12,000/MT for C-DRI and INR 11,000/MT for P-DRI. The manufacturers are not willing for any price corrections as they are getting orders at current offers.
3. Integrated plant in Odisha, OCL Iron & Steel has kept its offers firm at INR 11,400-11,500/MT (80 FeM C-DRI) for outside state buyers.
4. Shiv Shakti Steel, a 200 TPD sponge manufacturer in Hyderabad, sold 80 FeM C-DRI lump at INR 13,200/MT ex-plant. The company is also offering billet at INR 21,000/MT. Cauvery Iron in the same place is offering P-DRI at INR 12,900/MT (80 FeM).
5. BMM Ispat has kept offers unaltered to INR 11,900-12,000/MT ex-works (Karnataka) for 79 FeM P-DRI lump.
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