Sponge offers across major Indian markets were down by INR 100-300/MT D-o-D. Suppliers reported inventory levels continuous on rising mode due to weak trade and strong supply.
Current offers for 80 FeM C-DRI are as follows- INR 14,000-15,400/MT (US$ 205-230) in South India, INR 12,600-13,800/MT (US$ 185-205) in Central region & INR 12,500-13,000/MT (US$ 185-193) in East India.
Sponge manufacturers reported that they are reluctant to cut prices as there are limited purchasers and willing to buy at cheaper prices.
Trade Highlights
1. Sunvik Steels in Karnakata has reduced prices by INR 400-500/MT. Offering 80 & 82 FeM C-DRI are INR 15,100/MT and INR 15,600/MT ex-plant.
2. BMM Ispat in Karnataka has kept offers unchanged; 80 FeM P-DRI offers are at INR 14,500/MT ex-plant. Currently the plant is operational at nearly 40% due to weak demand amid high inventory levels.
3. Premium between P-DRI & C-DRI have reduced in Bellary to INR 200/MT, which was at around INR 500/MT during mid of current month. Thus purchasers are inquiring for C-DRI instead of P-DRI due to better realizations.
4. Rayen Steels Pvt Ltd in Karnataka reported, lull inquiries at offers of 80+ FeM C-DRI at INR 14,200-14,300/MT ex-plant.
5. Durgapur based manufacturers reported purchase inquiries from Bangladesh and they have quoted C-DRI lumps at INR 14,000/MT (ex-works).
6. Rourkela based manufacturers are offering C-DRI mix material at INR 12,500/MT through CST billing. However, for domestic purchasers offers are assessed at INR 12,200-12,400/MT.
Domestic sponge offers as on 21 Nov’16
| Particular/Delivery | C-DRI | D-o-D | P-DRI | D-o-D |
| Ex-Durgapur | 13,050 | 0 | 12,550 | + 50 |
| Ex-Rourkela | 12,400 | – 100 | 12,100 | – 100 |
| Ex-Raipur | 13,600 | – 200 | 12,600 | – 100 |
| Ex-Bellary | 14,000 | – 250 | 13,800 | 0 |
| Ex-Hyderabad | 15,400 | – 100 | 15,000 | 0 |
Prices in INR/MT
Source: SteelMint Research
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