The Indian Sponge iron exports offers to Bangladesh have moved down this week by USD 5/MT due to slump in domestic prices and constant fall in global scrap prices.
According to SteelMint’s weekly price assessment the latest export offers for 78-80 FeM sponge lumps by East India based manufacturers stood at USD 385-390/MT which is down against last week of around USD 390-395/MT; CPT Benapole (land port of Bangladesh and India). On CFR basis, the offers are hovering at around USD 405-410/MT, CFR Chhittagong, Bangladesh.
An exporter based in Kolkata stated, “the buyers in Bangladesh are more inclined towards domestic scrap rather than sponge iron, however the producers who are making quality steel are the one showing interest for sponge iron. Today, a deal have been concluded at USD 390/MT, CPT Benapole port” he added.
Another trader from the same place mentioned that, “demand is weak at the offer prices of USD 385-390/MT CPT, the buyers are looking to purchase at around USD 370-375/MT due to cheaper domestic scrap prices which are hovering at BDT 31,000-32,000/MT (USD 372-384) ex-works & excluding local taxes”.
Further, the imported scrap offers also moved down in current week and are assessed at USD 385-390/MT for Shredded 211 from USA & at around USD 355-360/MT containerized HMS 1&2(80:20) from UK, CFR Chittagong.
Indian Sponge iron Prices Slump
Domestic sponge iron prices continue to show a downtrend due to low demand and with slump in scrap & billet prices globally.
According to SteelMint assessment, the prices decline about INR 1,000/MT (USD 15) in a week and currently offers are hovering at INR 21,600-21,800/MT ex-Durgapur & INR 20,200-20,400/MT ex-Rourkela; for 78-80 FeM C-DRI mix material.
Industry participants are assuming that, Indian sponge iron prices have less scope to increase as there is strong availability in the major producing states. In addition, declining global scrap prices is another major factor which has made price pressure on sponge iron makers resulting in price corrections.
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