As per SteelMint’s assessment, the current sponge prices in South India – Bellary & Central region- Raipur have declined to 3 months low as similar offers was recorded during mid of Aug’18.
The prices are falling continuously on account of supply boost, falling raw materials & substitute products prices due to poor demand from local EA or Induction furnaces.
In a week’s duration domestic sponge prices fell by INR 600-800/MT (USD 8-11). Similar price corrections were noticed in substitutes i.e. scrap & pig iron by INR 500-800/MT (USD 7-11), W-o-W.
After the hitting low levels of 3 months, the latest price assessment for 78-80 FeM sponge P-DRI stood – at INR 20,600-20,800/MT ex-Raipur, Central India & INR 20,100-20,300/MT ex-Bellary, South India.
Meanwhile price range for the same material in other major markets i.e. eastern India recorded at INR 21,300-21,500/MT in Durgapur & INR 21,500-21,700/MT ex-Rourkela. The prices are excluding 18% GST.
“Fall in the prices of raw materials like pellet/Iron ore and inquiries as well leads to price corrections” stated an official from integrated plant in Raipur, Central India. The pellet prices in Raipur fall by INR 500/MT in a week & INR 1,200-1,300/MT M-o-M.
The trade participants also reported, stockpiling amid disturbed power supply by Jindal in Punjipathra Raigarh has resulted in over supply of sponge iron in Central region.
Further in Bellary few small size sponge producers (100-300 TPD) stated that there is less demand from West (Maharashtra & Gujarat) & from domestic market as well owing to falling melting scrap prices. As per assessment in a week’s duration domestic scrap prices in Jalna, Gujarat & Chennai declined by INR 500-1,000/MT.
In line the price movement in raw material RB2 coal offers reported slump of around INR 500/MT and latest offers reported at close to INR 6,500/MT (Incl Tax) in Mangalore port, South India as against earlier purchases made at around INR 6,900-7,100/MT (Incl Tax), few sponge manufacturers reported.
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