Indian sponge offers today reached at INR 12,500-15,000/MT (USD 185-220) with minor price change of INR 100-200/MT D-o-D. However, during the same period billet offers increased by INR 500/MT (USD 8) in Central & East region.
Reduce production of Ingot/billet makes trade bearish, according to the sponge manufacturers.
Snapshot of Major Market Producers
In Central India, a Raipur based smelter added, that sellers are forcing them to purchase sponge in bulk quantity to get additional discount.
Durgapur based a 300 TPD sponge manufacturer reported, due to export deals sponge prices are supported otherwise there was more chances for fall in prices.
In Odisha, according to trade sources the manufacturers are not getting any bulk bookings through CST billing at current quote prices of INR 12,800-13,000/MT (ex-plant) for 80 FeM C-DRI mix material.
Similarly in Bellary few small size manufacturers have cut their offers owing to low inquiries and liquidity crunch. Offers by medium size sponge manufacturers for P-DRI at INR 13,500/MT & C-DRI at INR 13,700-13,800/MT for 80 FeM material. However, the large manufacturers who are offering prime grade, offers are at INR 14,000-14,200/MT ex-plant for C-DRI.
Sponge prices as on 6 Dec’16
| Particulars | C-DRI | D-o-D | W-o-W | P-DRI | D-o-D | W-o-W |
| Ex-Durgapur | 14,400 | + 150 | + 450 | 13,800 | + 150 | + 350 |
| Ex-Rourkela | 12,700 | + 200 | + 100 | 12,600 | + 200 | + 50 |
| Ex-Raipur | 14,200 | + 150 | – 400 | 13,150 | + 150 | – 350 |
| Ex-Bellary | 13,450 | – 200 | – 250 | 13,200 | – 100 | – 150 |
| Ex-Hyderabad | 14,900 | – 100 | – 100 | 14,500 | – 100 | – 100 |
Prices in INR/MT
Source: SteelMint Research
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