Sponge and Billet offers in Indian domestic market turn on positive note on improved demand.
Today, SteelMint’s price assessments for induction furnaces billet size 125×125 mm are reported at INR 24,600-27,000/MT (USD 382-418) and Coal based 78-80 FeM sponge C-DRI price analysis was at INR 15,200-16,700/MT (USD 235-259) ex-plant.
Past couple of days, the offers for both products increase approximately INR 200-500/MT (USD 3-8) in major trade markets based in Central & East part of India.
These regions contribute about 30-35% of India’s total billet production and near 45% of Indian total sponge production. The regions supply material across India and exports too.
Standalone Billet producers in Central & Eastern regions reported good response from the re-rollers hence the offers strengthening.
Further, with healthy billet demand, sponge manufacturers also take advantage and have increased their offers.
It seems that domestic sponge offers to remain supported as there is seasonal downfall in productions. In addition, globally rising scrap & pig iron prices made an addition support for sponge market.
Indian sponge & billet reference prices as on 18 July 2017
| Particular/Delivery | C-DRI | D-o-D | W-o-W | Billet | D-o-D | W-o-W |
| Ex-Raipur | 16,700 | 0 | 0 | 25,700 | +200 | -50 |
| Ex-Durgapur | 15,800 | +200 | +550 | 25,600 | +400 | +200 |
| Ex-Rourkela | 15,250 | +50 | +150 | 24,600 | +150 | -100 |
| Ex-Bellary | 15,700 | 0 | -400 | 26,400 | +100 | 0 |
| Ex-Ahmedabad | – | – | – | 27,000 | +100 | -300 |
| Ex-Mumbai | – | – | – | 25,850 | -350 | -1,350 |
Ex-works basic prices, excluding GST at 18%
Source: SteelMint Research
Leave a Reply