The Indian Sponge iron exports offers to Bangladesh have moved down this week by USD 10-15/MT due to slack domestic inquiries.
SteelMint’s latest price assessment for lumps grade FeM 78-80 sponge iron stood at around USD 370-375/MT CPT Benpole (dry land port of Bangladesh & India) and about USD 390-395/MT CFR Chhittagong, Bangladesh.
“Inquiries by Bangladeshi smelters remain subdued amid scarcity & higher prices of imported scrap, recent a deal of about 1,000 MT Sponge iron concludes at USD 390/MT CFR,” a supplier source based in eastern India stated.
Domestic inquiries remains poor
Indian sponge iron producers remained under selling pressure due to poor domestic inquiries resulting in gradual decline in prices. As per market participants, purchase by the Induction owner’s limited on assumption of further fall in prices.
The domestic prices for Sponge iron (C-DRI) FeM 78-80 hovering at INR 21,200-21,400/MT (USD 325-328) ex-Durgapur, INR 20,300-20,500/MT (USD 311-314) ex-Rourkela, INR 21,500-21,700/MT (USD 330-333) ex-Raipur & INR 20,900-21,100/MT (USD 320-323) ex-Bellary. The prices mentioned above excluding 18% GST.
Imported Scrap
Imported scrap offers to Bangladesh slightly fell during last week and are reported for shredded scrap from UK and USA at USD 410-412/MT, while offers for HMS 1&2 (80:20) are at around USD 395-400/MT (both in containers) from Dubai and Brazil, CFR Chhittagong.
According to trade participants report to SteelMint, presently the importers in Bangladesh have turned silent looking at higher imported scrap prices and are in wait & watch mode to take positions.
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