Sponge iron prices in eastern India (Durgapur) have dropped sharply by INR 1,000/t ($14) w-o-w. However in the same duration it plunged by INR 100-600/t in other key markets of the country.
SteelMint learned that, sponge iron consumption has come down in major locations due to curtailed furnaces/hot rolling mills production, resulting in sufficient availability of sponge iron in spot market & significant fall in price range. Also, lessened exports led to a constant drop in price range in eastern region.
In Durgapur offers for FeM 78 sponge C-DRI (mix material) reported at INR 20,500/t & P-DRI at INR 19,500/t DAP. Meanwhile offers for FeM 80, Sponge C-DRI mix material in Rourkela, Odisha hovering at INR 19,500-19,600/t exw; dropped by INR 600/t, w-o-w.
Export offers of Sponge iron have narrowed down this week by $5/t due to no fresh booking as well falling domestic prices. Current offers stand at $305/t CPT Benapole, equivalent to $320-325/t CFR Chittagong, Bangladesh.
A source based in Odisha, who majorly supplies C-DRI to Raipur (Chhattisgarh) & Jalna (Maharashtra) region stated, “No major bookings from Central India were reported due to fall of ingot/billet production”
Coming to price movement in central India, where selling pressure increased with the producers & offers marked a fall of INR 400-500/t in a week with fresh deals at INR 18,900-19,000/t for P-DRI, exw.
Also in southern India, demand remains limited on account of drop in billet prices following limited demand in finished steel. Sponge prices was corrected by INR 300-400/t in a week and currently stood at INR 18,400/t for P-DRI.
Billet cum sponge manufacturer in Bellary (Karnataka) cited they are not planning to reduce prices further & complete dispatches of previous bookings.
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