Sponge offers in Karnataka reported another fall of INR 200-300/MT D-o-D, & INR 700-800/MT W-o-W. Recently, few manufacturers have reduced production to maintain demand-supply.
Current offers for 80 FeM C-DRI in Karnataka at INR 14,000/MT which was at INR 14,500/MT on 22 Nov’16. Similar in P-DRI which offers are prevailing at INR 13,500-13,600/MT; down by INR 300/MT.
Sources reported to SteelMint that few medium size plants have cut production by approx 50%, the plants are – Dhruvdesh Metals (200-300 TPD), ILC Iron & Steel Ltd (350 TPD), Hare Krishna (300 TPD) & Rayen Steel (200 TPD). In Hyderabad few more plants are in the process of production cut like Om shiv shakti & Reactive Ispat, respectively.
The Karnataka has sponge iron capacity of 4.5 MnT, followed by Odisha at 12.50 MnT, Chhattisgarh at 9.00 MnT and West Bengal & Jharkhand at 4.50 MnT (yearly). These States are the key suppliers for sponge iron.
Trade Highlights of Karnataka (South India)
1. BMM Ispat yet to open fresh offer. The company’s last offers was at INR 14,500/MT for 80 FeM P-DRI, ex-plant.
2. Sunvik Steels has cut prices by INR 500-600/MT; offering 80 & 82 FeM C-DRI are at INR 14,600/MT and INR 15,000/MT ex-plant.
3. Prakash Sponge a prime grade sponge manufacturer has also reduced prices by INR 500/MT; Current offer for 80 FeM C-DRI lump at INR 13,800/MT, ex-plant.
4. Shiv Shakti Steel, a 200 TPD sponge manufacturer in Hyderabad, has offered 80 FeM C-DRI lump at INR 15,300/MT. The company is also offering billet at INR 23,000/MT (ex-plant).
Source: SteelMint Research
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