Indian Sponge Offers Surge Over Strong Billet

Domestic sponge market has registered price rise of INR 100-300/MT, following the price surge in billets by INR 400-800/MT D-o-D. Sharp hike in billet offers amid strong demand led to support Indian sponge market.

Current offers for 78-80 FeM C-DRI are hovering in the range of INR 13,400-15,600/MT (US$ 195-230) ex-works.

On weekly premises sponge offers surge by INR 700-1,500/MT. However, looking to raw materials price movement, imported coal & domestic Iron ore prices are currently firm. RB2 coal offers are prevailing at USD 83/MT CNF India.

Trade Highlights

1. Raipur based Integrated plants are offering P-DRI at INR 14,400/MT ex-plant. In Raipur, most of the manufacturers are making P-DRI & Sponge DR-CLO due to high purchase interest in the materials and limited plants are operational for C-DRI as in general the same grade material are available at cheaper prices from the other states.

2. Durgapur based Shyam Sel hiked P-DRI prices by INR 300/MT to INR 14,500/MT. The company’s another unit in Jharsugda (Odisha) is offering P-DRI at INR 13,700-13,800/MT ex-plant.

3. Rourkela based manufacturers offered C-DRI mix material at INR 13,500-13,700/MT & lumps at INR 14,000/MT through CST billing, as reported by a smelter in Jalna.

4. Sunvik Steels in Karnataka further raise sponge prices by INR 350/MT; offering 80 FeM at INR 14,950/MT & 82 FeM at INR 15,350/MT, ex-plant.

5. BMM Ispat in South region is offering 80 FeM P-DRI at INR 14,400-14,500/MT ex-Karnataka. The same grade material is being offered by small size manufacturers at INR 14,100-14,300/MT ex-plant.

Domestic sponge offers as on 21 Dec’16

Prices in INR/MT
Source: SteelMint Research