Indian sponge iron export offers fall by USD 10/MT for the current week, according to SteelMint’s weekly assessment.
According to trade participants, the inquiries are less presently due to falling domestic scrap prices in Bangladesh. Also, the healthy bookings made for imported scrap by the Bangladeshi smelters kept away them for fresh sponge purchases on expectations that the high congestions at the ports may clear slowly which may ease scrap supply. In addition, the buyers are also looking for further lower sponge offers to take positions, the sources mentioned.
Bangladesh is the major buyer of Indian sponge iron exports, out of total sponge iron exports from India, Bangladesh procures around 50% of material.
SteelMint’s current week price assessment for 80 FeM sponge lumps are at around USD 310-315/MT CPT Benapole (land port of Bangladesh and India) and at around USD 325-330/MT CFR Chittagong (in containers), the offers down by USD 10/MT against last week’s assessment.
A trade source based in Bangladesh also confirmed about falling domestic ship breaking prices which is currently at 32,000-32,500 MT Bangladeshi taka against last week around 33,000 Bangladeshi taka.
Imported scrap offers are evaluated at around USD 325/MT for HMS, USD 330/MT for Shredded & USD 335/MT for PnS, CFR Chittagong (Bangladesh) basis.
Indian Sponge Iron Exports Increase
India’s sponge exports increase in first 7 month’s of CY 2017. According to data maintained by SteelMint stats, the nation has exported about 270,000 MT Sponge iron during Jan-July 2017 against same preceding CY 2016 at 180,000 MT.
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