MS Ingot offers pan India were down from last 2 months owing to seasonal slowdown in the demand. Whereas, Sponge prices compared in proportion to MS Ingot prices, have seen limited downside. This has reduced the conversion and many mills have cut their production.
As per Induction Furnace operator based in Central & Eastern India, the ideal conversion spread from Sponge iron (FeM 80) to MS Ingot is at around INR 9,000/MT. Similarly from Sponge Pellet to MS Ingot is at INR 11,500/MT. A furnace based manufacturer in Mumbai shares, “MS Ingot/Billet production by HMS, generally the conversion rate is about INR 7,500/MT.”
Sponge manufacturers mentioned that “Sponge iron demand from other state has improved and we don’t see any pressure to immediate cut the offer by INR 500-700/MT. Our input cost of Iron ore, Pellet and Coal have increased by INR 1,000/MT.”
Conversion Table for Raipur, Durgapur & Mumbai (Jun & Sep, 2014)
|
As on Sep’2014 |
|||||
|
Raipur |
Prices(MT) |
Durgapur |
Prices (MT) |
Mumbai |
Prices (MT) |
|
MS Ingot |
29,800 |
MS Ingot |
30,700 |
MS Ingot |
31,800 |
|
Sponge (FeM 80) |
21,700 |
Sponge (FeM 78) |
21,600 |
Scrap (80:20) |
25,300 |
|
Conversion on 15 Sep, 2014 |
8,100 |
9,100 |
6,500 |
||
|
As on June’2014 (3 Month’s previous) |
|||||
|
MS Ingot |
30,700 |
MS Ingot |
31,300 |
MS Ingot |
32,800 |
|
Sponge (FeM 80) |
21,700 |
Sponge (FeM 78) |
19,500 |
Scrap (80:20) |
25,200 |
|
Conversion on 16 Jun, 2014 |
9,000 |
11,800 |
7,600 |
||
*Basic Prices, Monthly Average Price. Durgapur MS Ingot prices for Regular payment; rest all next day/advance payment.
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