- DRI export offers to Nepal decline by $2-4/t w-o-w
- Lower offers revive bookings, 20,000 t booked this week
India’s sponge iron export market witnessed a marginal correction during the week, with export offers easing further in line with the continued weakness in the domestic sponge iron market. As per BigMint’s weekly assessment, lower offer levels encouraged buyers to return to the market, resulting in a notable improvement in export bookings despite cautious sentiment across the region.
Pellet-based DRI export offers to Nepal declined by $2/t w-o-w to $267/t CPT Raxaul. Meanwhile, offers for coal-based DRI (CDRI mix) sponge iron to Nepal fell by $4/t w-o-w to $295/t CPT Raxaul. Export offers in CDRI (100% Lumps) to Bangladesh also softened, declining to $302/t CPT Benapole, as exporters adjusted prices to improve competitiveness amid limited buying interest.
The correction in offers reflected continued pressure from the weak domestic sponge iron market, where lower billet prices and weak finished steel demand have weighed on market sentiments. Exporters responded by offering more competitive prices to attract overseas buyers, particularly in neighbouring markets where procurement had remained slow in recent weeks.
The lower offer levels helped revive trading activity, with approximately 20,000 t of sponge iron booked during the week for shipment to Nepal and Bangladesh. Buyers viewed the revised prices as an attractive opportunity, leading to replenishment of bookings after an extended period of cautious procurement.
Despite the pickup in transactions, overall market participants remained selective in their buying decisions, with most purchases linked to immediate consumption requirements rather than long-term inventory building. Exporters also continued to monitor domestic price movements closely, as further corrections in the Indian market could influence export offer levels in the coming weeks.
Leave a Reply