Indian sponge market is showing mix trend from past more than one week over slight fluctuation in prices. For instance, today the offers in East India, increased by INR 150-250/MT. However, in Central & South regions it plunged by INR 100-200/MT day on day.
Trade participants mentioned, presently there is wait & watch situation from both buyer & sellers ; as they are waiting for the revision in Iron ore prices for the coming month giving more clarities about the sponge price movements.
With slight fluctuation, domestic offers for FeM 78-80 C-DRI are reported at INR 14,500-16,000/MT (USD 224-248) ex-works.
Sources in South India, Karnataka mentioned, over-availibility for C-DRI lumps due to increase in production and suppliers as well. Hence, price pressure remain on the material. Only couple of manufacturers are making sponge P-DRI namely, BMM Ispat and MSPL, they said.
Trade Highlights
1. The Integrated plants in Raipur are offering P-DRI at INR 14,400/MT. However, according to trade participant discount is being offered by manufacturers on bulk quantities above 500 MT.
2. Durgapur based Rashmi Metaliks and Shyam Sel increase sponge offers by INR 200-300/MT. The fresh offers for sponge P-DRI are reported at approx INR 14,500/MT.
3. Sources informed, Monnet Ispat is offering sponge fines at INR 14,800/MT ex-plant, Raigarh. Another, large manufacturer in the same place is offering C-DRI (mix material) at INR 15,000/MT; trade activities are lesser at these offers.
4. Bhaskar Steel and Ferro Alloy Ltd offered FeM 80 C-DRI through CST billing at INR 14,700/MT. The plant is also offering billet at INR 24,000/MT ex-plant (Odisha)
5. BMM Ispat in South India has reduced offers of FeM 80 P-DRI lumps by INR 300/MT to INR 15,000/MT ex-Bellary, Karnataka
6. Sunvik Steels in Karnakata has kept offers unaltered today after decline by INR 300/MT in the last week. The fresh offers for FeM 80 C-DRI at INR 15,200/MT & 82 FeM at INR 15,600/MT ex-plant, respectively.
Domestic sponge offers as on 30 May’17
| Region | Particulars | C-DRI | D-o-D | W-o-W | M-o-M |
| East India | Ex-Durgapur | 15,400 | + 250 | -50 | -700 |
| Ex-Rourkela | 14,500 | 0 | 0 | -1,000 | |
| Central India | Ex-Raigarh | 15,000 | + 150 | + 200 | -1,000 |
| Ex-Raipur | 15,900 | – 100 | – 400 | -1,200 | |
| South India | Ex-Bellary | 15,150 | – 100 | – 450 | -1,400 |
| Ex-Hyderabad | 16,000 | 0 | – 200 | -1,100 |
Prices in INR/MT
Source: SteelMint Research
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