In the week opening, domestic Sponge & Billet market observed slight price corrections of INR 100-300/MT due to low trade activities in major markets.
As per SteelMint’s assessment on 21 Aug’17, the prices for FeM 78-80 C-DRI sponge are reported at INR 18,000-19,000/MT (USD 281-297). While, induction furnaces billet (size 125×125 mm) are at INR 26,600-29,500/MT (USD 415-461) ex-works. All prices are ex-works & excluding of GST at 18%.
Coming to weekly price movement, the sponge & billet offers increased by INR 100-500/MT (upto USD 8).
Trade Updates:
1. Raipur based Integrated plants have maintained P-DRI offers at same levels of INR 18,000/MT. However, few medium size plants have reduced C-DRI prices by INR 200-300/MT to INR 19,000/MT ex-plant and excluding of GST at 18%.
2. Big plants in Durgapur, East India offered Sponge C-DRI at INR 18,400/MT, P-DRI at INR 17,500/MT & for Billet (size 100*100 & 125*125 mm) at INR 27,500/MT; basic & excluding of GST.
3. BMM Ispat in South India has offered FeM 80 P-DRI at INR 17,600/MT ex-Bellary, Karnataka.
4. Sunvik Steels in Karnataka kept sponge prices unaltered; offering FeM 80 & 82 C-DRI are INR 17,900/MT and INR 18,300/MT ex-plant
5. NMDC’s Iron ore production down by 17% M-o-M in July 2017, and sales up by 8% on monthly basis.
6. Odisha based KJS Ahluwalia & Kaypee Enterprises hike iron ore lump prices further up to INR 300/MT & fines by INR 150/MT.
Indian sponge & billet reference prices as on 21 August 2017
| Particular/Delivery | C-DRI | D-o-D | W-o-W | Billet | D-o-D | W-o-W |
| Ex-Raipur | 19,000 | -300 | 0 | 27,100 | -200 | +150 |
| Ex-Durgapur | 18,400 | -100 | +100 | 27,500 | 0 | +200 |
| Ex-Rourkela | 18,000 | -200 | +500 | 26,700 | -150 | +100 |
| Ex-Bellary | 18,000 | -100 | +550 | 28,500 | 0 | +500 |
| Ex-Ahmedabad | – | – | – | 28,900 | -300 | +350 |
| Ex-Mumbai | – | – | – | 28,450 | -100 | -250 |
Basic, ex-works prices & excluding of GST @ 18%
Source: SteelMint Research
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