Indian Sponge Iron Prices correct on improved Iron Ore supply

Sponge iron prices in India have weakened in the last week owing to improved supply of Iron ore in eastern region. Prices have corrected upto INR 500/MT last week and participants expect it to correct further this week.

Key Highlights

1. Odisha government has declared its first allotment of 4.2 MnT Iron ore for Jan-Mar’15 to state-based manufacturing units under 50:50 rule, which will certainly improve supply of the key raw material to a certain extent
2. Serajuddin Mines has received an extended Environmental Clearance (EC) of 15.15 MnT from an earlier approval of 4.5 MnT. Sources pointed out that the miner has started its production as well as has resumed sales after a gap of 3-month
3. Imported Scrap offers are firm owing to improved demand from Turkey. HMS 1&2 offers from Middle East were assessed at USD 315-320/MT and USD 310/MT, CIF Nhava Sheva from Europe
4. Scrap importers in India will prefer to wait due to volatility in Indian Rupee against the USD
5. Pellet manufacturers in eastern India have reduced their offers by upto INR 400/MT in last week

Trade-wise

1. C-DRI (Fines) in Rourkela is being traded at INR 18,300/MT
2. A well-known Sponge manufacturer based in Bellary is offering C-DRI (FeM 78-80 lump) at INR 19,300/MT
3. P-DRI (FeM 79-80) in Raipur is being traded at INR 18,200/MT
4. Shyam Sel (Shyam Group) is offering P-DRI (78 FeM) at INR 18,600/MT delivered to Durgapur

Current Offers as on 22 Dec’14

Reference prices
Source: SteelMint Research