Sponge price under pressure over Ingot/Billet production cut and increased supply of Iron ore pellets.
Raipur Sponge Iron prices continue to dip this morning as Sponge availability increases in addition to stiff competition with Sponge Pellet prices. Raipur Sponge Iron ore prices are down by 2% W-o-W (by INR 600-800/PMT) as offers are being quoted at INR 20,000-300/MT FeM 80(Payment given in advance). Similarly, Sponge Pellet is being offered by three major units at INR 19,000/MT which was offered at INR 19,700-20,000/MT last week.
Market participants in Raipur believe that pressure in prices will increase further as the Sponge availability increased and many furnaces (around 25 units) have surrendered their electricity load to CSEB for reducing their production.
In contrary, prices in Durgapur and Rourkela remains firm as production remains constant over good demand from U.P region. It’s also being learned that low scrap in domestic region is supporting the present Sponge prices. Sponge prices in Durgapur is being quoted at INR 20,100/MT.
Bellary Sponge has two offers, one is by the manufacturers at INR 18,800/MT and other by traders, being offered at INR 18,400/MT of FeM 75. Traders say that low demand from Maharashtra has created pressure on price and it might come down further due to festival season so market is keen in stock clearance.
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