Today, Billet & Sponge offers in Central & East India slightly fluctuate by INR 100-200/MT. However, in South India the sponge producers have raised their offers by INR 200-400/MT following strong inquiries and rising scrap prices in the region.
As per SteelMint’s assessment on 6th Sept, the prices for FeM 78-80 C-DRI sponge are reported at INR 17,700-19,000/MT (USD 277-297). While, induction furnaces billet (size 125×125 mm) are at INR 26,500-29,600/MT (USD 413-462). All prices are ex-works & excluding GST.
Key Updates
1. Indian sponge iron exports increase in H1 2017 against same preceding last year. In H1 CY 2017, exports recorded at 250,000 MT, surge by 78% against 140,000 MT in the H1 2016.
2. Indian iron ore exports have been down 7% M-o-M in Aug’17. India exported 0.54 MnT material in Aug’17 compared to 0.59 MnT in Jul’17.
3. National Mineral Development Corporation (NMDC) is going to conduct an e-auction of 26,000 MT calibrated lump ore, 24,000 MT ROM, 20,000 MT iron ore lump and 40,000 MT iron ore fines on 12 Sep’17
4. Central India, Raipur based Integrated plants have offered P-DRI (Sponge pellet) at INR 17,600-17,700/MT against last day at INR 17,700-17,900/MT; basic price & excluding of GST at 18%.
5. In West Bengal – Durgapur, big manufacturers have increased their offers by INR 100-200/MT; P-DRI at INR 17,700/MT & C-DRI at INR 18,600/MT.
6. Odisha based medium size sponge manufacturers slightly increase offers by INR 100/MT to INR 17,900-18,100/MT for FeM 80 C-DRI 70:30 mix material, ex-plant & excluding of GST at 18%.
7. BMM Ispat in South India has offered FeM 79+ P-DRI at INR 17,400/MT ex-Bellary, Karnataka.
8. Sunvik Steels in Karnataka consecutively increase sponge offers since couple of days. Today, the company has increase offers by INR 500/MT and are offering FeM 80 at INR 18,500/MT & & FeM 82 grade at INR 18,900/MT ex-plant.
Reference prices as on 6 September 2017
| Particular/Delivery | Size, Grade, Origin | Prices | Change | 1W | 1M | |
| C-DRI | Ex-Durgapur | Mix, FeM 78%, +/-1 | 18,600 | + 100 | 18,200 | 18,300 |
| Ex-Rourkela | Mix, FeM 80%, +/-1 | 18,000 | + 100 | 17,700 | 17,450 | |
| Ex-Raipur | Mix, FeM 80%, +/-1 | 19,000 | – 200 | 19,000 | 19,000 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 18,000 | + 250 | 17,600 | 17,500 | |
| P-DRI | Ex-Durgapur | Lumps, FeM 78%, +/-1 | 17,700 | + 200 | 17,200 | 17,300 |
| Ex-Rourkela | Lumps, FeM 78%, +/-1 | 16,900 | + 50 | 16,750 | NA | |
| Ex-Raipur | Lumps, FeM 80%, +/-1 | 17,650 | – 150 | 17,500 | 17,800 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 17,500 | + 50 | 17,300 | 17,300 | |
| Ingot | Ex-Mandi Gobindgarh | 3.5 x 4.5 Inch, IS 2830 | 29,350 | – 250 | 29,400 | 29,550 |
| Ex-Durgapur | 3.5 x 4.5 Inch, IS 2830 | 26,850 | – 150 | 26,800 | 26,900 | |
| Ex-Rourkela | 3.5 x 4.5 Inch, IS 2830 | 26,100 | – 50 | 26,000 | 26,100 | |
| Ex-Raipur | 3.5 x 4.5 Inch, IS 2830 | 26,900 | – 100 | 26,400 | 26,950 | |
| Ex-Mumbai | 3.5 x 4.5 Inch, IS 2830 | 27,800 | 0 | 28,150 | 28,300 | |
| Ex-Chennai | 3.5 x 4.5 Inch, IS 2830 | 28,000 | 0 | 28,500 | 28,000 | |
| Billet | Ex-Mandi Gobindgarh | 125×125 mm, IS 2831 | 29,800 | – 300 | 29,800 | 29,800 |
| Ex-Durgapur | 125×125 mm, IS 2831 | 27,250 | – 200 | 27,150 | 27,400 | |
| Ex-Rourkela | 125×125 mm, IS 2831 | 26,500 | – 50 | 26,400 | 26,500 | |
| Ex-Raipur | 125×125 mm, IS 2831 | 27,500 | 0 | 27,000 | 27,450 | |
| Ex-Mumbai | 125×125 mm, IS 2831 | 28,000 | 0 | 28,350 | 28,500 | |
| Ex-Chennai | 125×125 mm, IS 2831 | 28,500 | 0 | 29,000 | 28,500 | |
| TMT | Ex-Delhi/NCR | 12MM | 32,100 | – 200 | 32,950 | 33,400 |
| Ex-Durgapur | 12MM | 30,000 | – 100 | 30,000 | 30,000 | |
| Ex-Raipur | 12MM | 30,300 | + 100 | 29,800 | 30,000 | |
| Ex-Mumbai | 12MM | 31,000 | 0 | 31,600 | 31,600 | |
| Ex-Chennai | 12MM | 32,500 | 0 | 32,750 | 32,250 |
Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research
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