Indian Sponge Offers Slip by Upto INR 300/MT D-o-D

Domestic sponge market has registered a price correction of INR 50-300/MT against yesterday’s trade. Falling billet prices amid weak demand has resulted in correction of sponge iron prices.

Currently, 78-80 FeM C-DRI offers are hovering in the range of INR 13,400-15,750/MT and P-DRI within INR 13,350-15,200/MT on ex plant basis.

In outlook, Sponge manufacturers are anticipating prices to remain strong due to rising coal prices in the global market. Currently, South African RB2 coal offers are assessed at USD 74-75/MT for Oct’16 shipments which was during last week at USD 68-69/MT.

Key Highlights

1. Sources informed, Monnet Ispat is offering sponge DR-CLO at INR 16,000/MT and C-DRI at INR 15,100/MT ex-plant, Raipur. Another, large manufacturers in the same place are offering P-DRI at INR 14,000/MT; trade activities are less at these offers.

2. Durgapur based manufacturer Shyam Sel is heard to offer C-DRI at INR 14,200/MT and P-DRI at INR 13,600/MT.

3. Sunvik Steels in Karnakata has kept offers unchanged; Offering 80 & 82 FeM C-DRI at INR 15,600/MT and INR 16,000/MT ex-plant.

4. BMM Ispat from south, sold 80 FeM P-DRI at INR 14,000-14,100/MT ex-plant (Karnataka).

5. Prakash Sponge, a prime grade sponge maker in Karnataka sold 80 FeM C-DRI lumps at INR 15,000/MT. Deals have concluded to Coimbatore. Meanwhile, billet offers by an another manufacturer based in Bellary is heard at INR 22,800-23,000/MT.

6. Hare Krishna, a 300 TPD sponge manufacturer in Karnataka has offered 80 FeM C-DRI & P-DRI at INR 14,200/MT & INR 14,700/MT

7. Shiv Shakti Steel, a 200 TPD sponge manufacturer in Hyderabad, has offered 80 FeM C-DRI at INR 15,800/MT ex-plant; offering billet at INR 22,800/MT ex-plant.

Sponge prices as on 13 Oct’16 with premium between C-DRI & P-DRI

Prices in INR/MT
Source: SteelMint Research