Indian Sponge Iron Export Offers dip, as domestic supply strengthens

Sponge iron export offers to Bangladesh dipped marginally over slump in Indian domestic sponge prices

As per SteelMint weekly assessment, export offers in the current week for 78-80 FeM lumps stood at USD 357-360/MT against last week’s price of USD 360/MT, CPT Benapole (dry port of India & Bangladesh). However, through sea port the offers have remained unchanged against last week when they were reported at around USD 380/MT, CFR Chhittagong.

An East India based supplier stated, “Sponge iron export demand remained moderate, although the prices dropped in line with fall in domestic prices.

In the last weekend a deal for procurement about 3,000 MT sponge iron has been concluded at close to USD 360/MT, CPT. However, in this week deals are yet to take place at latest offers,” he added.

Indian domestic offers slump

The Indian domestic Sponge iron offers continue to decline owing to improved supply and declining raw material prices. The domestic sponge prices in Eastern India – reported a fall of INR 500-1,000/MT (USD 8-15) in last 10-12 days and about INR 1,000-3,000/MT (USD 15-45) in a month.

Current offers for 78-80 FeM Sponge C-DRI in major Indian markets are hovering at INR 19,500-19,700/MT (USD 300-303) ex-Durgapur, INR 19,800-20,000/MT (USD 305-308) ex-Rourkela – East India, INR 21,100-21,300/MT (USD 325-328) ex-Raipur – Central India & INR 20,200-20,400/MT (USD 310-313) ex-Bellary – South India.

According to market sources Indian sponge prices might even report further decline as selling pressure has been mounting on producers over mismatch in demand-supply constrains. Also there are anticipations that domestic Iron ore & pellet prices may come down as supply strengthens.

Imported Scrap offers decline

The Global scrap offers to Bangladesh also started to fall as buying interest by smelters witnessed a decline. As per importers, due to higher offers, steel mills in Bangladesh are trying to delay fresh bookings and are waiting for further decline in prices to take a decisive position.

As per SteelMint assessment this week prices have declined by about USD 5/MT and the latest offers for Shredded grade scrap from UK origin quoted at USD 395-400/MT against last week at USD 400/MT. Similarly, HMS 1&2 offers from middle east also fell to USD 380/MT against last week at USD 380-385/MT; CFR Chhittagong, Bangladesh.