On monthly average basis, sponge prices in Central & East India gain by INR 500-1,000/MT (3-6%) in Dec’16. However, in South region it slightly corrected by INR 50-150/MT.
Major price hike is seen in Durgapur (East India) by INR 800-850/MT followed by Rourkela & Raipur (Central & East India) by INR 500/MT.
It should be noted that sponge offers in December were in the highest level in 2016. It also assessed that there is a continuous rise in sponge prices since Sep’15.
In the month, the manufacturers were optimistic over sharp increase in sponge prices and stability in key raw materials that is Iron ore & Coal. Thus, margins of the manufacturers were quite good than in the last 12 months. During the month, domestic Iron ore prices were unaltered. While, global coal (South Africa) offers were up by USD 2-3/MT to USD 83/MT M-o-M, (CNF India).
78-80 FeM C-DRI prices are assessed at INR 14,500/MT (+6.15%) ex-Durgapur, INR 14,650/MT (+3.53%) ex-Raipur, INR 13,050/MT (+3.57%) ex-Rourkela and INR 14,000/MT (-0.71%) ex-Bellary M-o-M. As cities in line, the comparison to Dec’15 offers gain by 17.08%, 12.86%, 11.53% & 14.49%.
Monthly average sponge (C-DRI) prices
| Month | Bellary | M-o-M | Durgapur | M-o-M | Raipur | M-o-M | Rourkela | M-o-M |
| Jan’16 | 12,050 | -200 | 12,250 | -150 | 12,950 | -50 | 11,600 | -100 |
| Feb’16 | 11,900 | -150 | 12,900 | 650 | 13,250 | 300 | 11,700 | 100 |
| Mar’16 | 12,600 | 700 | 12,450 | -450 | 13,150 | -100 | 11,500 | -200 |
| Apr’16 | 12,200 | -400 | 12,050 | -400 | 12,900 | -250 | 11,350 | -150 |
| May’16 | 11,650 | -550 | 11,300 | -750 | 12,300 | -600 | 10,700 | -650 |
| Jun’16 | 11,550 | -100 | 11,400 | 100 | 12,100 | -200 | 10,450 | -250 |
| Jul’16 | 11,650 | 100 | 11,500 | 100 | 12,150 | 50 | 10,650 | 200 |
| Aug’16 | 12,150 | 500 | 12,400 | 900 | 12,450 | 300 | 11,200 | 550 |
| Sep’16 | 13,800 | 1,650 | 13,350 | 950 | 14,150 | 1,700 | 12,800 | 1,600 |
| Oct’16 | 14,150 | 350 | 13,950 | 600 | 14,550 | 400 | 13,100 | 300 |
| Nov’16 | 14,100 | -50 | 13,650 | -300 | 14,150 | -400 | 12,600 | -500 |
| Dec’16 | 14,000 | -100 | 14,500 | 850 | 14,650 | 500 | 13,050 | 450 |
Prices in INR/MT
Source: SteelMint Research
Leave a Reply