Within last 2-3 days, sponge offers in Durgapur have increased significantly by around INR 500/MT on account of shorty supply of iron pellet.
In the starting of current week, P-DRI in Durgapur was being offered at INR 11,000/MT and C-DRI at INR 12,000/MT. While today, offers for 78 FeM P-DRI reached at INR 11,500/MT and C-DRI at INR 12,400-12,500/MT.
Sources reported to SteelMint, most of the large pellet manufacturers in east region namely Rashmi Metaliks, Jindal Steel (JSPL), Brahmani River Pellet Limited (BRPL), are aggressively exporting pellets to global buyers. Other pellet makers-Arya Iron & Steel and Shyam Sel are also heard looking for export orders amid higher realizations.
The manufacturers were majorly selling pellets to Durgapur (West Bengal) based sponge manufacturers and now due to export offers, the plants are not offering major quantity in the domestic market.
Sponge manufacturers in the region also mentioned that the manufacturers are eyeing to get export business as in international market, realization is higher by around INR 700-800/MT compared to domestic market.
It is anticipated that sponge prices in the region will become strong further, looking at scarcity for pellet in east domestic market.
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