SteelMint sources confirmed that production of Ingot across the country has increased owing to raised conversion cost of Sponge to Ingot. The prices are up by INR 500-1,000/MT that resulted in re-starting of the furnaces, which were closed 1-2 months ago.
What will be the impact of increased production of Ingot?
Ingot/Billet: In all the major markets, production of Ingot has increased to 60-70% (earlier 50%). Increased conversion cost from Sponge to Ingot has encouraged manufacturers to re-start their units (majorly the Plants with 2 units). Industry sources believes that increase in supply and high input cost may keep the prices within a range bound.
Sponge: Prices are inching up gradually as they reach INR 18,500-20,500/MT due to high Iron ore rates and better demand. Increased production of Ingot recently, will have major effect in Sponge iron prices.
Current offers for Raipur Sponge iron are at INR about 20,200-20,500/MT. Sponge iron prices in Rourkela was tracked at about INR 18,300-18,600/MT and Durgapur is about INR 20,700/MT.
[su_quote]“In this, prices demand is good and we don’t have major stock. If demand continues in the same pace, Sponge prices will improve in near future”, commented a Sponge manufacturer based in Raipur.[/su_quote]
Imported Scrap: Indian Steel makers and importers, who had restricted their purchases of imported Scrap owing to high prices, seem to be showing interest. Imported offer of HMS 1&2 CNF Mumbai port is USD 370-372/MT (INR 23,000/MT) up by $5.
Re-bar: Finish steel demand improve pan India as housing sector construction and as Govt. project completion expedite. Price increased by INR 1,000-1,500/MT W-o-W.
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