Indian Sponge offers fell by INR 100-500/MT D-o-D & INR 500-1,200/MT W-o-W. Persistent weak demand has resulted in fall in prices, according to the sponge manufacturers.
Presently, offers for FeM 78-80 sponge C-DRI are assessed at INR 15,500-17,200/MT (USD 241-268) ex-works
Premium between P-DRI and C-DRI in Raipur has increased by INR 400-450/MT to INR 1,550/MT, W-o-W. In line, Durgapur by INR 200/MT to INR 800-1,000/MT and Bellary to INR 550/MT.
However, looking to raw materials price movement, imported coal & domestic Iron ore prices are currently firm. RB2 coal offers are prevailing at USD 75-76/MT CNF India. According to the assessment, it was noted that South African Coal Exports Down 3% in Mar’17
Plant wise updates
1. Raipur based Integrated plants have kept P-DRI offers unchanged at INR 15,600/MT. The manufacturers were shocked today by the post rollover iron ore prices by NMDC for May’17 deliveries as they were sure about to cut prices for the same. This may result strengthen sponge prices in near future.
2. Durgapur based Rashmi Metaliks has reduced sponge prices by INR 100-200/MT; offers heard for P-DRI at INR 15,200/MT & for C-DRI by small manufacturers at INR 16,000-16,200/MT.
3. BMM Ispat in South India has reduced offers of FeM 80 P-DRI lumps by INR 300/MT to INR 16,200/MT ex-Bellary, Karnataka.
4. Sunvik Steels in Karnataka reduced sponge prices by INR 400/MT; offering FeM 80 C-DRI at INR 17,000/MT & FeM 82 at INR 17,400/MT, ex-plant.
5. Chennai buying FeM 80 P-DRI lumps from Bellary at INR 16,800-17,000/MT FoR, reported by market participants
6. Prakash Sponge, a prime grade sponge maker in Karnataka offered FeM 80 C-DRI lumps at INR 16,500/MT ex-plant.
7. Apple Industries, a merchant seller in Karnataka offered billet at INR 26,500/MT and FeM 80 C-DRI lump at INR 16,500/MT ex-plant (Karnataka).
8. Shiv Shakti Steel (Hyderabad) has reduced offers for FeM 80 C-DRI lump by INR 500/MT to INR 17,000/MT ex-plant. The company is also offering billet at INR 27,000/MT (ex-plant).
Domestic sponge offers as on 2 May’17
| Particulars | C-DRI | D-o-D | W-o-W | P-DRI | D-o-D | W-o-W |
| Ex-Durgapur | 16,100 | – 100 | -1,000 | 15,200 | – 200 | -1,200 |
| Ex-Rourkela | 15,500 | – 100 | -500 | 0 | 0 | 0 |
| Ex-Raigarh | 16,000 | 0 | -600 | 15,000 | – 50 | -600 |
| Ex-Raipur | 17,100 | 0 | -200 | 15,550 | – 50 | -650 |
| Ex-Bellary | 16,550 | – 250 | -600 | 16,000 | – 500 | -1,000 |
| Ex-Hyderabad | 17,100 | – 450 | -700 | 17,000 | – 400 | -800 |
Prices in INR/MT
Source: SteelMint Research
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