Indian sponge iron export offers to Bangladesh moved down by around USD 5/MT this week on account of limited inquiries & strong rupee against US dollar.
Indian rupee is currently trading at Rs 68.8 than the last week (12th Jul) at Rs 68.5 against US dollar. In line with this, domestic sponge offers in eastern region are more or less on same range against last week.
The current export offers for 79-80 FeM Sponge C-DRI lumps hovering at USD 280/MT CPT Benapole (dry port of India & Bangladesh), this is equivalent to USD 290-295/MT CNF Chittagong, Bangladesh. These export offers are lower by USD 5/MT against last week’s assessment at USD 285/MT CPT & USD 295-300/MT CNF Chittagong.
As per exporters as well sponge producers in eastern India, the buying inquiries are close to USD 275/MT on CPT Benapole, however as the domestic demand strong, they are not in mood to deal in exports on low price range.
Hence there was no fresh deal reported this week by couple of manufacturers & exporters in Kolkata, eastern India.
Also, the local steel demand in Bangladesh was reported weak couple of days ago due to ongoing monsoon season in the county. This led to fall in price range of domestic finished steel products in Bangladesh.
It seems following weak demand of finished steel is forcing mills to look raw materials at cheaper offers.
The trades also limited in imported scrap to Bangladesh as the price range inch down in recent trades. SteelMint’s assessment for containerised Shredded scrap from UK, Europe and USA stands at USD 328-333/MT CFR Chittagong, marginally down in comparison to last week, with quite a few deals being reported in this range.
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