Indian Sponge iron export offers to Bangladesh reported to be firm on steady demand, fluctuating Indian currency & slight fall in domestic sponge prices. On an average India’s annual sponge iron export to Bangladesh is about 250,000 to 300,000 MT.
As per exporters, buying interest is supported at firm prices. Meanwhile, Indian currency continues to remain volatile & is trading at 73.5 against US dollar.
The latest export offers for FeM 78-80 sponge iron hovering at USD 340/MT CPT Benapole (dry port of India & Bangladesh), equivalent to USD 360/MT CFR Chittagong, Bangladesh. The prices are more or less similar against SteelMint’s last week assessment at USD 340-345/MT CPT & USD 360-365/MT CFR.
As per an exporter, average volumes have been booked in current week by major mills based in Chittagong & Dhaka at an average price of USD 340/MT, CPT. However as the rupee volatile & also domestic prices slide, the export offers are more or less firm, he mentioned.
Sponge iron prices in Indian domestic market have slightly fallen by INR 500/MT (USD 9.5) Week-on-Week, following subdued demand & rising supply.
The current offers for FeM 78-80 Sponge iron evaluated at INR 22,800-23,000/MT ex-mill at Durgapur & INR 22,000-22,200/MT ex-mill in Rourkela, East India.
Meanwhile for same grade prices in other major markets are at around INR 22,800-23,000/MT ex-Raipur, Central India & INR 21,500-21,700/MT ex-Bellary, South India.
Market participants anticipate, Indian sponge iron prices to find support over stable prices of Iron ore & resumption in demand for pellet exports. Also seasonal rise in global scrap prices may support Indian sponge demand & prices as well.
Imported scrap offers to Bangladesh reported at around USD 375-380/MT, CFR Chittagong for containerized Shredded scrap.
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