Sponge iron export demand continued to remain bearish as mills in Bangladesh are not showing any major buying interest despite the offers are more or less firm.
The current export offers reported at near to USD 315/MT CPT Benapole(dry port of India & Bangladesh), equivalent to USD 335/MT CNF Chittagong, Bangladesh.
As per exporters in Kolkata (eastern India), the buyers are not placing any major orders and few deals were at near to USD 310/MT CPT, this is equivalent to USD 330/MT CNF Chittagong.
The reason behind falling demand cited were sufficient availability of raw materials (Sponge iron & Scrap), also competitive prices of imported & domestic scrap to the Bangladesh. This in turn resulted in wait and watch for future bookings of raw materials.
The latest offers for imported containerised Shredded scrap reported at around USD 340/MT, slightly down from a week ago at USD 340-345/MT, CFR Chittagong.
Indian sponge iron prices remain volatile
Since couple of weeks, sponge iron prices in Indian domestic market volatile by INR 500/MT on fluctuating raw materials, seasonal improved supply & rising domestic billet prices.
In raw materials – iron ore prices fell slightly. In line Billet, prices climbed by INR 500/MT in a week. Hence, sponge iron market being observed slight change in prices.
The current prices of Sponge C-DRI 78-80 FeM is hovering at INR 18,700-18,900/MT (USD 269-272) ex-Rourkela, INR 19,500-19,700/MT (USD 280-283) ex-Jharkhand & INR 20,300-20,500/MT (USD 290-293) ex-Durgapur.
Participants are assuming that, sponge iron prices may remain slightly under pressure in domestic market due to improved supply and expected price pressure on raw materials.
Indian Sponge iron exports jump more than two folds
India’s sponge exports rise more than 150% M-o-M & stood at around 69,300 MT in Mar’19. In Feb’19, the nation has exported about 27,300 MT Sponge iron, as per provisional data received by SteelMint,
Bangladesh remained the largest importer of Indian sponge iron during Mar’19, occupying about 58% followed by Nepal (21%) and Bhutan (17%).
Tata International Ltd, Rashmi Cement Ltd & Tata Sponge Iron Ltd were the major exporter who exported Indian sponge iron lumps to the overseas market. As per the data the companies total sponge iron export were at around 14,000 MT,12,700 MT & 8,000 MT, respectively during Mar’19.
Further exports to Bhutan rise sharply in Mar’19 & stood at 12,000 MT as against 5,800 MT in Feb’19 and the exports during Mar’19 were made by Tata Sponge & Monnet Ispat based in Central & Eastern India.
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