Indian Sponge Offers Fell As Induction Operators hold Purchase

Domestic sponge offers  continue to downtrend  as it further fell by INR 200-400/MT, D-o-D. Offers decline on the grounds of weak demand as most of the Induction operators have reduced production and few are planing for temporarily stop operations.

Current offers for 78-80 FeM C-DRI are hovering in the range of INR 12,700-15,600/MT (US$ 188-230) & P-DRI within INR 12,000- 15,000/MT (US$ 177-223) ex-works.

Central, East & South based sponge manufacturers reported that no major fresh deals on CST billing. This led to increase in stock levels as compare to regular stock level. Thus, they are willing to sell material at lower prices as compared to general market price.

An agent who sells sponge iron from central & south to west India quoted “Basically, sponge iron demand was mostly from Hyderabad, Jalna & Mumbai. But, at  present  zero buying activities from these markets  and there are less possibilities of support in sponge iron offers till furnaces get full fledged operational.”