India: Shyam Metalics offers P-DRI at INR 18,700/MT Ex-Odisha

• Sponge iron prices stable; may see some correction owing to monsoon
• Rising imports of Iron ore offsets scarcity in domestic market
• Odisha based miners held prices unchanged

Shyam Metalics & Energy, India’s one of the largest Coal based Sponge iron manufacturer with an annual capacity of 0.8 MnT, is offering Pellet sponge (P-DRI) at INR 18,700/MT (Ex-Jharsugda, Odisha).

Sponge iron prices remain stable in eastern region of India owing to limited supply of Iron ore from Odisha. However, rising imports of Iron ore may not impact shortage of Iron ore to a great extent.

Sponge iron prices in southern India also remain at the same level, however with Billet prices sharply falling in Mumbai, Jalna, Goa & Hyderabad, Sponge prices will be under pressure in coming days.

Imports will offset Shortage of Iron Ore in Domestic Market

Indian steelmakers will import around 1 MnT of Iron ore by July-end, which is almost equivalent to the loss of production occurred in Odisha owing to the Supreme Court’s verdict for suspending mines running under second deemed renewal, since mid-May 2014.

Current Offers for Sponge Iron (C-DRI) & Pellet Sponge (P-DRI)

Place	Grade	C-DRI	P-DRI	Notes
Rourkela	78-80	19,500	–	Freight to Raipur at INR 1,300-1,400/MT
Jharsugda	78-80	19,400	–	Shyam offering P-DRI at INR 18,700/MT
Raigarh	79-80	21,100	19,000	Singhal offers P-DRI at INR 19,300/MT
Raipur	79-80	21,300	19,500	Monnet selling P-DRI at INR 19,500/MT
Durgapur	79-80	20,600	19,100	Freight to Mandi Gobindgarh at INR 2,600/MT
Bellary	75	19,700	18,400	BMM offers 75 FeM P-DRI at INR 18,500/MT
Hyderabad	77	–	19,800	Freight from Bellary to Hyderabad at INR 800/MT

Prices for Ex-Works & basic; ED at 12.36%; VAT as applicable
Next day/advance payment