Indian sponge offers surge following the prices rise of billets. Suppliers reported that sales have risen on increased prices.
On D-o-D, sponge offers in central & east India have registered a price rise of INR 200-600/MT against last day trades. Major price rise was reported in Raipur by INR 500-600/MT. While, in Rourkela & Durgapur it increased by INR 200-400/MT.
Trade Highlights
1. Raipur based Integrated plants have concluded bulk deals for P-DRI in the range of INR 13,500-13,700/MT. It seems that manufacturers will further raise prices in line with strong demand.
2. According to trade sources, Shyam Sel in Durgapur has halted their sponge sales and looking for further price hike. The company in opening trades has sold out P-DRI at INR 13,600/MT & C-DRI at INR 14,400-14,500/MT.
3. Odisha based trader reported that sponge prices may remain strong as billet price rose from INR 200-300/MT D-o-D.
4. BMM Ispat in Karnataka has raised offers on yesterday, current offers for 80 FeM P-DRI at INR 14,100-14,200/MT ex-plant.
5. Sunvik Steels in Karnakata has kept offers unchanged. Offering 80 & 82 FeM C-DRI are INR 14,600/MT and INR 15,000/MT ex-plant.
Domestic sponge offers as on 3 Nov’16
| Particulars | C-DRI | D-o-D | P-DRI | D-o-D | Current Premium | 1 Week earlier Premium |
| Ex-Durgapur | 14,400 | + 250 | 13,600 | + 250 | 800 | 850 |
| Ex-Rourkela | 13,000 | + 300 | 12,650 | + 450 | 350 | 700 |
| Ex-Raipur | 14,700 | + 550 | 13,700 | + 600 | 1,000 | 800 |
| Ex-Bellary | 14,050 | + 50 | 13,600 | + 50 | 450 | 600 |
| Ex-Hyderabad | 15,300 | + 200 | 15,000 | + 100 | 300 | 350 |
Prices in INR/MT
Source: SteelMint Research
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