Weak demand has further plunged sponge prices in East & South India by INR 50-300/MT, D-o-D. However, in Central region the manufacturers has maintain offers on same level.
Current offers for 78-80 FeM C-DRI are in the range of INR 12,200-15,400/MT (US$ 180-225) & P-DRI within INR 11,400-14,800/MT (ex-works).
In context to raw materials, Iron ore prices are firm, whereas global coal offers plunged by US$ 5-6/MT, W-o-W. Current offers for RB2 South African coal are prevailing at US$ 81/MT, CNF India.
Sponge manufacturers in South & East India reported that, they are willing for bulk purchasers on advance payments. In general the South based manufacturers are selling material to West & East in turn to North on credit payments. And post demonetization of Indian currency has effected the manufacturers and they are not able to get payments on time due to liquidity crunch and in turn the sales is being affected on CST billing.
Indian Sponge & Coal Offers as on 22 Nov’16
| Region | Particulars | INR/USD | Size/Grade | Prices | D-o-D | W-o-W |
| East India | Ex-Durgapur | INR | Mix, FeM 78 +/-1 | 13,000 | – 50 | -350 |
| Ex-Rourkela | INR | Mix, FeM 80 +/-1 | 12,200 | – 200 | -700 | |
| Central India | Ex-Raipur | INR | Mix, FeM 80 +/-1 | 13,600 | 0 | -700 |
| South India | Ex-Bellary | INR | Lumps, FeM 78 +/-1 | 13,800 | – 200 | -700 |
| Ex-Hyderabad | INR | Lumps, FeM 80 +/-1 | 15,400 | 0 | -300 | |
| Global | CNF India | USD | RB2 (5500 NAR), South Africa | 81 | 0 | -6 |
Source: SteelMint Research
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