High inventory with sponge makers has led to selling pressure on the manufacturers in central India. This in turn has forced the producers to reduce their offers in domestic market.
In a week, C-DRI prices have declined by INR 100-300/MT, which today further corrected by INR 100-400/MT against last day closing. Meanwhile, MS billet prices have also decreased by INR 200-500/MT D-o-D.
Current 78-80 FeM C-DRI offers are hovering in the range of INR 11,300-13,050/MT and P-DRI within INR 10,850-11,800/MT.
A sponge manufacturer located in Raipur reported, “We haven’t sold sponge iron from last 2-3 days and if the similar situation prevails for long term, we are likely to hold our production.”
Similar comments are received from other sellers based in Odisha, Raigarh and Durgapur. Alongside, few agents in central India also mentioned that there are no sponge buyers at present, thus, sellers are waiting for counter offer to sale material.
C-DRI and P-DRI prices as on 16 Jan’16
| Particular | Size (FeM) | C-DRI | D-o-D | W-o-W | P-DRI | D-o-D | W-o-W |
| Ex-Mandi Gobindgarh | 78 +/-1 | 15,600 | -400 | NA | 14,100 | -500 | NA |
| Ex-Durgapur | 78 | 12,000 | -300 | -300 | 11,100 | -300 | -200 |
| Ex-Rourkela | 78 | 11,300 | -200 | -200 | 11,000 | 0 | NA |
| Ex-Raigarh | 80 +/-1 | 11,900 | -100 | -100 | 10,850 | -150 | -150 |
| Ex-Raipur | 80 +/-1 | 13,050 | -150 | -50 | 11,800 | -300 | -400 |
| Ex-Bellary | 78 +/-1 | 12,150 | -100 | -150 | 11,350 | 0 | -250 |
Prices in INR/MT
Source: SteelMint Research
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