Indian sponge iron export offers to Bangladesh moved up by USD 5-10/MT, as per SteelMint weekly price assessment. The increase in offers is in line with rising domestic prices, the supplier sources stated.
The latest export offers for 80 FeM sponge lumps reported at USD 315-320/MT against last week offers of USD 310/MT, CPT Benapole (land port of Bangladesh and India). Offers for Chittagong, Bangladesh stood at USD 330-335/MT, CFR basis.
If the trade participants are to be believe, the smelters in Bangladesh are more interested towards scrap rather than high cost sponge due to the similar offers for both key products and so there is no fresh export deal for sponge iron.
The fresh imported scrap offers are reported – HMS-1 at USD 325-330/MT & Shreded at USD 335/MT CFR Chittagong.
Bangladesh Domestic Steel demand Improved
The producer sources based in Dhaka, Bangladesh reported, there is improvement in domestic rebar demand due to couple of reasons, first, there is favorable weather conditions which in turn pushed construction activities and second there is stability in global market.
The domestic offers are reported for Rebars 12mm – 300W 60 Grade at around 50,000- 51,000 Bangladesh Taka (USD 602-614) & 400/500W 60 grade near to 55,000 Bangladeshi Taka (USD 662), prices are including local taxes at 17%. Further, domestic ship breaking melting scrap offers are reported to be firm at around 30,000-31,000 MT (USD 361-373), including local taxes.
Reference Prices as on 2nd Nov 2017
| Particular | Prices |
| Indian Sponge iron (78 FeM), Ex- Durgapur | INR 18,100-18,300 |
| Indian Sponge (80 FeM), Ex- Odisha | INR 17,100-17,200 |
| Sponge iron lumps CPT Benapole | USD 315-320 |
| Scrap HMS1 CFR Chittagong | USD 325-330 |
| Scrap Shredded at CFR Chittagong | USD 335 |
Source: SteelMint Research
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