Sponge iron market in Raipur was standstill from past few months at around INR 21,000-21,500/MT which has started to fall now. In East India (Durgapur), buying of semi finish is decent from nearby states (Ingot/Billet) as Sponge iron prices are stable.
A manufacturer of Central India commented, “Out of total Sponge production, 60-70% Sponge iron is utilized for own consumption and rest 30-40% of material is sold to nearby states like Maharashtra, Madhya Pradesh and including few states of Northern India. Buying has remained dull in these states, mainly in Maharashtra owing to cheaper imported Scrap prices. As a result, availability of Sponge iron increased from past 7-10 days which puts selling pressure on Sponge manufacturers to reduce their offers.
Currently, Sponge iron in Raipur is offered at INR 20,700-20,800/MT for 50:50 (lumps & fines) and Sponge pellet at INR 19,400/MT. Whereas, Sponge iron in Raigarh is traded at INR 19,800-19,900/MT. In Rourkela, it is hovering at INR 18,800-19,000/MT which puts pressure on the Central Indian prices. Currently, FoR offer from Rourkela to Raipur is at INR 20,300-20,500/MT (all prices on Ex-works basis).
Manufacturers of Maharashtra added that they have increased their buying of imported Scrap from Europe & US as offers are cheaper by around INR 1,500-2,500/MT from past few days. Currently, they are using 50-70% Scrap and rest Sponge iron & Pig iron to produce Ingot/Billet.
In Durgapur (West Bengal), buying of Ingot/Billet from Bhiwadi (Rajasthan), Mandi (Punjab) and other neighboring countries is good which supports the prices of Sponge iron & Sponge pellet. Sales of Sponge iron is stable from long time. On the other hand, demand of finished steel is falling continuously in the market as compared from mid of Feb’14.
Indian Sponge Iron & Sponge Pellet Prices as on 08 Mar, 2014
|
Place |
FeM |
Sponge Iron |
W-o-W |
M-o-M |
Sponge Pellet |
W-o-W |
M-o-M |
|
Mandi |
78 |
23,200 |
– 500 |
– 200 |
– |
– |
– |
|
Rourkela |
78 |
18,900 |
– 400 |
– 500 |
– |
– |
– |
|
Durgapur* |
78 |
20,300 |
+ 100 |
– 100 |
19,100 |
+ 250 |
– 350 |
|
Raipur* |
80 |
20,700 |
– 400 |
– 900 |
19,450 |
– 350 |
– 550 |
|
Raigarh* |
80 |
19,800 |
– 250 |
– 500 |
18,700 |
– 350 |
– 600 |
|
Bellary |
75 |
19,400 |
– 100 |
– 200 |
18,200 |
– 200 |
– 800 |
|
Hyderabad |
77 |
– |
– |
– |
19,600 |
– 400 |
– 1,100 |
Basic prices in INR/MT; ED at 12.36; VAT as applicable
*Payment next day
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