Following price corrections in billet and low demand, the Indian sponge manufacturers are also reluctant to cut prices.
On weekly basis, sponge iron prices registered fall of INR 400-800/MT (USD 6-13) with current offers evaluating in the range of INR 17,400-18,800/MT (USD 272-294) for FeM 78-80 C-DRI and INR 16,700-17,800/MT (USD 260-278) for P-DRI. All prices are ex-works & excluding of GST at 18%.
Raw Materials:
In context to raw materials, domestic Pellet & Iron ore price remain on the rise.
Pellet offers surge: with strong exports, Indian domestic pellet prices also increase by INR 100-400/MT in a week duration.
Iron ore: In the last couple of week’s, Odisha based largest merchant Iron ore miners have raised Iron ore prices by INR 400-600/MT.
Further, South African coal (RB2) offers were also strong & assessed at USD 84-85/MT CNF India against last week at USD 82-83/MT.
Domestic sponge offers as on 24 Aug’17
| Region | Particular/Delivery | C-DRI | D-o-D | W-o-W | P-DRI | D-o-D | W-o-W |
| East India | Ex-Durgapur | 17,800 | – 350 | -800 | 16,800 | – 450 | -800 |
| Ex-Rourkela | 17,600 | – 150 | -400 | 16,800 | – 200 | -200 | |
| Central India | Ex-Raigarh | 17,700 | – 100 | -600 | 16,700 | – 100 | -600 |
| Ex-Raipur | 18,800 | 0 | -400 | 17,500 | – 100 | -600 | |
| South India | Ex-Bellary | 17,400 | – 200 | -600 | 17,200 | – 200 | -450 |
| Ex-Hyderabad | 17,800 | – 200 | -500 | 17,800 | – 200 | -200 |
Basic, ex-works prices & excluding of GST @ 18%
Source: SteelMint Research
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