Indian sponge iron exporters resume trades for Bangladesh after two weeks at a price lower USD 5/MT than last assessment.
SteelMint’s current week assessment for export grade sponge iron stands at USD 355/MT CPT Benapole (dry port of India & Bangladesh) and USD 375/MT CFR Chittagong (Sea port of Bangladesh).
SteelMint learned from market sources that deal of 3,000-4,000 tonnes have been concluded last week end at around USD 355/MT CPT Benapole and few deals are under negotiation at similar price levels. Although Bangladesh based buyers are not too aggressive at the moment due to sufficient stock levels at plant head.
“Bangladesh based furnaces are not too keen to stock sponge iron due to monsoon season and sufficient inventories. Steel demand generally remains weak during this period.” said a trader based in Bangladesh.
India exported about 250,000 MT Sponge iron (DRI) in first four months of 2018 (Jan to Apr), in which exports to Bangladesh recorded at 127,500 MT which accounts for more than 50% of total exports.Rest 45,000 MT was exported to Bhutan, 36,500 MT to Nepal and 25,300 MT to Oman.
Indian Domestic Sponge Prices Fall
Sponge prices in Indian domestic market have declined about INR 500-1,000/MT (USD 8-15) in last one week over low seasonal demand on falling billet prices.
Current prices for export grade Sponge iron assessed at INR 22,800-23,000/MT ex-Durgapur & INR 21,500-22,000/MT ex-Odisha/Jharkhand, East India
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