Indian Sponge Offers Slip on Limited Inquiries

Indian sponge offers today are at INR 14,300-17,000/MT (USD 210-250) ex-works, with price fall of INR 100-400/MT D-o-D. Limited purchase inquiries amid price correction in billet led to fall in Indian sponge offers.

On D-o-D, billet offers in the major key markets have decreased by INR 100-800/MT (up to USD 10).

Raipur based manufacturers heard offer discount in P-DRI to the Maharashtra (West region) based buyers. The plants general offer for P-DRI assessed at INR 15,000-15,100/MT. However, according to the buyers they received call with discount of INR 200/MT for bulk purchase. Billet manufacturers in Raipur are majorly buying sponge C-DRI from Odisha at below INR 16,000/MT FOR.

In Durgapur, limited manufacturers are producing P-DRI due to high pellet prices and less domestic & export demand for the produced material. Current offers for P-DRI is at INR 14,800/MT & C-DRI at INR 15,300/MT for domestic buyers.

Rourkela based small size manufacturers are offering 80 FeM C-DRI mix material at INR 14,300-14,600/MT (ex-plant) for out of state buyers. Another, prime grade manufacturers namely, Rexon Strips reported lumps price at INR 15,300/MT ex works and added that the material have been sold out to Patna. Trade participants in the market shared, ‘trades are sufficient in the domestic market while exports bookings are limited’.

In Hyderabad, today P-DRI sold at less price of INR 500/MT than yesterday’s price. Similarly, billet offers also down by INR 500/MT to INR 26500/MT ex-works.

A official in BMM Ispat, Karnataka quoted, “Sponge (DRI) price are likely to be remain range bound or may fall slightly looking at weak buying by billet manufacturers as they have sufficient stock for coming few days”

Domestic sponge offers as on 5 Jan’17

Prices in INR/MT
Source: SteelMint Research