Indian Sponge iron export demand has slowed down specifically from Bangladesh, which is the largest buyer of Indian exports with a contribution of more than 50%.
The suppliers in Kolkata (eastern India) stated that, most of the major buyers in Bangladesh remained away from taking positions looking at significant drop in imported scrap offers. However at the same time Indian sponge iron export offers are more or less firm. Thus amid anticipated drop in sponge iron prices, the buyers are currently in ‘wait & watch’ mode.
Current export offers of Indian sponge iron (80 FeM, 100% lumps) were reported at around USD 295-300/MT CPT Benapole (dry port of India & Bangladesh), which is equivalent to USD 310-315/MT CFR Chittagong, Bangladesh.
Further the suppliers stated that few small deals were concluded towards the beginning of the week at around USD 300/MT CPT Benapole, however after that most of buyers turned silent.
Inline with this, there is constant fall in imported scrap offers to Bangladesh and as per SteelMint’s assessment, the offers for containerized Shredded scrap from UK/Europe stands in the range of USD 295-300/MT, CFR Chittagong, down by USD 10-12/MT W-o-W. The buying interest for US origin Shredded scrap reported at close to USD 290/MT, CFR; considering declining offers globally.
Also, the local steel demand in Bangladesh is learnt to have remained slow, as reported by sources. As per them, the stockist have postponed their bookings eyeing further fall in offers in coming days.
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