Sponge offers in Rourkela, Odisha further strengthen as it reported a price rise of INR 100-200/MT D-o-D & up to INR 500/MT in a week duration. Standalone sponge manufacturers in the state reported, better purchase by outside State smelters and moderate sales in the local market.
The State has installed capacity for sponge iron (approximately) at 12.50 MnT followed by Chhattisgarh at 9.00 MnT, West bengal-Jharkhand at 4.50 MnT, Gujarat at 7.80 MnT and Karnataka at 4.50 MnT, yearly.
Presently, Rourkela based manufacturers are offering C-DRI mix material at INR 14,500-14,700/MT through CST billing. The manufacturers in the state are anticipating further strong prices, looking at strengthen raw material prices (Iron ore prices surge by INR 100-300/MT for Jan’17) & due to some supply shortage in the material. In a week, RB2 coal offers were up by USD 5-6/MT to USD 85/MT CNF India.
According to trade sources, recently few plants has shut down for maintenance & production cut, the plants are – Govindam Sponge, Sita Sponge and Shyam Metaliks; which created shortage for sponge and strengthen prices.
However, offers in other major sponge iron market are almost remained firm on persistent soft buying. 78-80 FeM C-DRI prices are assessed at INR 14,800/MT (+50) ex-Durgapur, INR 15,800/MT (0) ex-Raipur, INR 14,400/MT (+100) ex-Rourkela and INR 15,700/MT (-100) ex-Bellary. Price changes are mentioned on D-o-D (against last day trade) basis.
Source: SteelMint Research
Leave a Reply