Manufacturers in central, east & south regions have opened their offers with a price rise of INR 100-300/MT for both P-DRI & C-DRI.
Sponge offers in Indian market are improving significantly. Following the price rise, today offers have further increases.
Presently, 78-80 FeM C-DRI offers are assessed in the range of INR 11,900-13,850/MT and P-DRI within INR 11,100-13,500/MT ex-works. In a week, price rose by INR 1,000/MT in domestic market.
“Demand is strong on ground of prevailing positive sentiments in the market. Rising raw material prices and rumor of price hike by primary producers for both semis & long products are providing additional support to the market”, a south based renowned manufacturer quoted.
Domestic sponge offers as on 1 Sept’16
| Particulars | C-DRI | D-o-D | P-DRI | D-o-D | Current Premium | 1 Week earlier Premium |
| Ex-Durgapur | 13,100 | + 100 | 12,400 | + 200 | 700 | 750 |
| Ex-Rourkela | 11,900 | + 200 | 0 | 0 | 0 | 0 |
| Ex-Raipur | 13,100 | + 150 | 12,150 | + 150 | 950 | 1,250 |
| Ex-Bellary | 12,850 | + 200 | 12,300 | + 200 | 550 | 500 |
| Ex-Hyderabad | 13,850 | 0 | 13,500 | + 100 | 350 | 350 |
Prices in INR/MT
Source: SteelMint Research
Highlights
1. Raipur based large manufacturers sold P-DRI to Jalna at a price of INR 11,900-12,000/MT on yesterday; freight charges are INR 1,200-1,300/MT. Today, the manufacturers have further raised offers by INR 200/MT to INR 12,100-12,200/MT. However, no major deals have been heard on this increased offers. The manufacturers are also offering DR-CLO lumps at INR 14,200-14,400/MT, reported few buyers based in Maharashtra.
2. In Durgapur, Shyam Sel and Rashmi Metaliks have increased P-DRI prices by INR 200/MT to INR 12,400/MT. Shyam Sel is also offering C-DRI at INR 13,200/MT, with a price rise of INR 200/MT D-o-D.
3. Bhushan Power & Steel is offering 78 FeM P-DRI at INR 11,000-11,100/MT ex-Jharsuguda. Aryan Ispat in the same place is offering 79-80 FeM C-DRI at INR 12,300-12,400/MT ex-plant. The plant is mostly selling material to Raipur; frieght reported at INR 700-800/MT.
4. Bonai (Odisha) based Mahakali Ispat is offering 80 FeM C-DRI at INR 12,000/MT on CST billing and INR 11,800/MT for VAT billing, ex-plant.
5. Shiv Shakti Steel, a 200 TPD sponge manufacturer in Hyderabad, sold 80 FeM C-DRI lump at INR 13,800/MT ex-plant. Cauvery Iron in the same place is offering P-DRI at INR 13,500/MT (80 FeM).
6. BMM Ispat has kept sales closed in the current week. The plant’s last offers for 79 FeM P-DRI was heard at INR 12,200/MT, ex-works (Karnataka), an official reported.
7. Sunvik Steels in Karnataka has increased offers by INR 600/MT in last 2-3 days. Presently, offers for 80 FeM C-DRI lumps are evaluated at INR 13,300/MT and for 82 FeM C-DRI at INR 13,700/MT ex-plant.
8. Prakash Sponge in Karnataka has sold about 1,500 MT 80 FeM C-DRI lumps at INR 13,100-13,200/MT (ex-plant) to Kerela and Tamil Nadu. The company is also offering lower grade sponge (75 FeM fines) at INR 9,400-9,500/MT.
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