On monthly average basis, Indian sponge offers climbed sharply by INR 1,700-2,500/MT (12-17%) in Mar’17. Highest price rise was recorded in South India.
During the month, rise in raw material prices (Iron ore, pellet & domestic coal) and coupled with strong demand amid high prices of other substitute products have forced sponge manufacturers to maintain their offers at high levels.
In Mar’17, prices for substitute products that is melting scrap also rose up to 13% (INR 2,200/MT).
Major price rise in sponge was seen in Bellary (South India) by INR 2,400-2,500/MT, following the price gain of INR 1,800-2,000/MT in Raipur & Durgapur.
During the month Indian Iron ore prices were increased up to INR 400/MT, similarly global coal (South Africa) offers also higher at USD 77/MT (CNF India).
In Mar’17, 78-80 FeM C-DRI average prices are assessed at INR 16,950/MT (+12.25%) ex-Durgapur, INR 18,150/MT (+12.04%) ex-Raipur, INR 16,150/MT (+11.76%) ex-Rourkela and INR 17,450/MT (+16.72%) ex-Bellary. As cities in line, the comparison to Mar’16 offers gain by 36.14%, 38.14%, 40.43% & 38.77%.
In Mar’17, the price level of sponge was higher approx INR 4,500-5,000/MT than in Mar’16.
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 |
| Jan’17 | 15,250 | +1,250 | 14,800 | +300 | 15,750 | +1,100 | 14,150 | +1,100 |
| Feb’17 | 14,950 | -300 | 15,100 | +300 | 16,200 | +450 | 14,450 | +300 |
| Mar’17 | 17,450 | +2,500 | 16,950 | +1,850 | 18,150 | +1,950 | 16,150 | +1,700 |
Prices in INR/MT
Source: SteelMint Research
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