Sponge offers in Indian market surge by INR 700-1,400/MT (USD 10-22) in last 8-10 days.
Seasonal low production, strong demand and rising scrap & pig iron prices globally supported Indian sponge market. Notably, domestic scrap & pig iron prices also moved up around INR 1,000/MT (USD 15), W-o-W.
On 26 July, SteelMint’s price assessment for 78-80 FeM sponge C-DRI are reported – at INR 15,900-16,000/MT ex-Rourkela, INR 17,300-17,500/MT in Durgapur, INR 16,800-17,000/MT ex-Raipur & INR 16,200-16,400/MT ex-Bellary. The offers increased by INR 700-1,400/MT against quote on 15 July 2017.
“Heavy rains resulted halt in operational activities, affecting supply and inquiries from the domestic buyers continue to upsurge” reported a senior person from a 500 TPD sponge plant in Durgapur, East India.
Further in Rourkela, Odisha few small size sponge producers (100-300 TPD) stated that there is quite good demand from West & North-east India owing to shortage & higher prices of scrap. According to them good quantities of sponge C-DRI has been sold out at the price range of 15,800-16,000/MT (ex-works) for mix material.
In Raipur, Central India the trade participants reported, the big plants have booked bulk quantities of sponge P-DRI at the price range of INR 15,600-15,700/MT on 25th July. Hence, today the producers quote same material at INR 15,800-16,000/MT, ex-plant.
Source: SteelMint Research
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