Indian Sponge Offers Remain Under Pressure

Indian sponge offers remain under pressure as it reported further fall by INR 100-400/MT D-o-D. Looking at the price change in week, it is down to INR 800/MT. The major factor for price correction is the persistent decline in Ingot/Billet prices in the Indian domestic market.

Presently, domestic offers for 78-80 FeM C-DRI are assessed in the range of INR 13,700-16,000/MT (USD 202-235) ex-works. While, export offers by East Indian based manufacturers for lumps are prevailing at USD 240-245/MT CNF Bangladesh.

Trade Update of Key markets

Central India: Sparse demand from the neighbouring States as well from the local market has further decline sponge prices in Raipur. Integrated plants in Raipur are offering P-DRI at INR 14,200/MT which was at INR 14,400/MT on 30th Jan’17. Similarly, sponge DR-CLO prices are assessed at INR 16,000-16,200/MT by medium size sponge manufacturers.

East India: Rourkela based manufacturers are offering 80 FeM C-DRI mix material in the range of INR 13,800-14,000/MT & 100% lumps at INR 14,200-14,300/MT through CST billing. Manufacturers stated, less inquiries at this offer price.

South India: 80 FeM C-DRI offers in the region are prevailing at INR 14,800-15,000/MT & same grade P-DRI offers at INR 14,600-14,700/MT ex-works, Karnataka.

A sponge manufacturer in the region has quoted, “Sponge (DRI) price are likely to remain range bound or may fall slightly looking at weak buying by billet manufacturers as they have sufficient stock for coming few days”

Premium between C-DRI and P-DRI in Central India has increased by INR 150/MT to INR 1,100/MT W-o-W. In East & South regions it remain unaltered at INR 300-400/MT & INR 200-300/MT, respectively.

Domestic sponge offers as on 31 Jan’17

Prices in INR/MT
Source: SteelMint Research