Sponge manufacturers in south India have cut the prices by INR 600-800/MT D-o-D. Lull demand and increasing inventory levels have forced manufacturers to deal at lower prices.
Current offers for 80 FeM P-DRI in bellary is INR 13,000/MT and for C-DRI is INR 13,800-14,000/MT which was INR 14,000/MT & INR 14,500/MT ,on 15 Oct’16 respectively. Similarly, prices have moved down by upto INR 1,500/MT W-o-W.
Large manufacturers in the region reported inventory levels has gone up owing to weak demand specially by western India based smelters as they are receiving vying offers by central and east based sponge manufacturers.
W-o-W, sponge offers in central and east India fell by INR 800-1,000/MT; in south (Bellary & Hyderabad) have plunged by INR 1,000-1,500/MT.
It seems that sponge offers in the domestic market will remain under pressure due to ramp up supply, which will increase price competition and better supply of other substitute products like scrap and pig iron.
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