Daily Update: Indian Sponge & Billet Market

With sharp hike in pig iron offers by Neelachal Ispat & improved demand, Indian Sponge & Billet offers gain momentum. On daily analysis the prices of sponge & billet increased up to INR 500/MT.

Today, SteelMint’s price assessment for induction furnaces grade billet (size 125×125 mm) are reported at INR 25,500-28,000/MT (USD 398-437) ex-works, which is at INR 25,400-28,000/MT (USD 398-438) on 2nd August 2017.

Further after slight increase in offers, FeM 78-80 FeM sponge C-DRI is hovering in the range of INR 16,600-17,700/MT (USD 259-276) ex-works.

Few small size (100-300 TPD) sponge manufacturers in Central & East regions indicated that prices likely to remain on stronger mode as there is good demand amid supply crunch for the material. In addition expensive prices of key substitutes like scrap & pig iron are the major factors for tighten sponge market.

Market Updates:

1. According to the sources, Central India – Raipur based Integrated plants have increased offers for P-DRI by INR 200/MT to INR 17,000-17,100/MT and the offers by medium size plants for C-DRI are reported at INR 18,000-18,200/MT. The prices are basic ex-works & excluding of GST at 18%.

2. In Durgapur, big manufacturers have increased sponge offers by INR 200/MT to INR 17,700/MT for FeM 78 C-DRI & INR 16,700/MT for P-DRI

3. Bhaskar Steel and Ferro Alloy Ltd, an Odisha based plant offered FeM 80 C-DRI at INR 16,500/MT & billet at INR 25,500/MT ex-plant.

4. BMM Ispat, South India’s largest sponge iron plant has kept offers unaltered, FeM 80 P-DRI reported at INR 16,500/MT ex-plant.

5. Sunvik Steels in Karnataka has increased offers by INR 200/MT; offering FeM 80 & 82 sponge C-DRI lumps are INR 16,800/MT & INR 17,200/MT ex-plant, respectively.

Indian sponge & billet reference prices as on 3 August 2017

Basic, ex-works prices & excluding of GST @ 18%
Source: SteelMint Research