Indian sponge offers climbed up by INR 600-700/MT M-o-M in Oct’16 and the highest price rise was recorded in East India.
Higher raw material prices forced sponge manufacturers to maintain their offers at high level.
In Oct’16 sponge iron production tend to decrease due to monsoon. However, demand was quite good during the same period.
Prices for substitute products i.e. melting scrap also rose by 6-7 % in Oct’16.
Major price rise in sponge was seen in Durgapur (east India) by INR 600-700/MT, following the price gain of INR 300-400/MT in Raipur, Rourkela & Bellary. Similar price surge was also recorded in billets by 4-5%.
On monthly average basis, 78-80 FeM C-DRI prices are assessed at INR 13,950/MT(+4.54%) ex-Durgapur, INR 14,550/MT (+2.73%) ex-Raipur, INR 13,100/MT (+2.30%) ex-Rourkela and INR 14,150/MT (+2.50%) ex-Bellary. The price level was higher than Oct’15 in Oct’16 that is approx INR 500/MT.
Monthly average sponge (C-DRI) prices
| Month | Bellary | M-o-M | Durgapur | M-o-M | Raipur | M-o-M | Rourkela | M-o-M |
| Apr’16 | 12,200 | -400 | 12,050 | -400 | 12,900 | -250 | 11,350 | -150 |
| May’16 | 11,650 | -550 | 11,300 | -750 | 12,300 | -600 | 10,700 | -650 |
| Jun’16 | 11,550 | -100 | 11,400 | +100 | 12,100 | -200 | 10,450 | -250 |
| Jul’16 | 11,650 | +100 | 11,500 | +100 | 12,150 | +50 | 10,650 | +200 |
| Aug’16 | 12,150 | +500 | 12,400 | +900 | 12,450 | +300 | 11,200 | +550 |
| Sep’16 | 13,800 | +1,650 | 13,350 | +950 | 14,150 | +1,700 | 12,800 | +1,600 |
| Oct’16 | 14,150 | +350 | 13,950 | +600 | 14,550 | +400 | 13,100 | +300 |
Prices in INR/MT
Source: SteelMint Research
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