Sponge offers in Eastern region, Rourkela & Durgapur fall marginally by INR 100-300/MT (upto USD 5) day on day. However, in other major markets like Raipur & Bellary it firm for the day.
After a slight fall, offers for sponge C-DRI FeM 78-80 in Eastern region are evaluated at INR 14,700-14,900/MT ex-Rourkela & INR 15,600-15,700/MT in Durgapur. Where as in Central region, Raipur it evaluated at INR 15,800/MT & in South, Bellary at INR 15,000-15,200/MT ex-plant.
Offers corrected in line with low inquiries and fresh price reduction by Odisha based major merchant iron ore producers namely Rungta Mines & Essel Mining by INR 75-250MT for Jun’17 deliveries.
It seems that following the price corrections in East region, prices in Central & South India may also observed some corrections as the selling destination is similar for these across markets and are well competitors.
A market participant in Bellary, South India quoted, “Sponge (DRI) price are likely to be remain range bound or may fall slightly looking at weak buying by billet manufacturers”. Also added no major buying coming from south-west regions.
Plant wise updates
1. Since few days Integrated plants in Raipur have managed P-DRI offers at INR 14,400-14,500/MT. However, no bulk deals being reported at this prices but offers firm due to strong Ingot/billet market.
2. Durgapur based Rashmi Metaliks has reduced sponge prices by INR 200/MT; offers heard for P-DRI at approx INR 14,700/MT & for C-DRI at INR 15,600-15,700/MT.
3. Singhal Steel offered C-DRI (0-20 mm) at INR 15,000/MT ex-plant, Raigarh. The company also sold billet at 25,500/T FoR Raipur.
4. Bhaskar Steel and Ferro Alloy Ltd offered FeM 80 C-DRI through CST billing at INR 14,800-14,900/MT. Also offering billet at INR 23,800-23,900/MT ex-plant (Odisha).
5. Last day, BMM Ispat in South India has increased offers of FeM 80 P-DRI lumps by INR 200/MT to INR 15,000/MT ex-Bellary, Karnataka.
6. Sunvik Steels in Karnataka kept sponge prices unaltered; offering FeM 80 C-DRI at INR 15,200/MT & FeM 82 at INR 15,600/MT, ex-plant.
7. Prakash Sponge, a prime grade sponge maker in Karnataka offered FeM 80 C-DRI lumps at INR 15,100/MT ex-plant.
Prices in INR/MT
Source: SteelMint Research
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