Indian Sponge Iron Export Offers Remain Stable

The Indian Sponge iron exports offers to Bangladesh remained stable despite falling imported scrap prices. The exporters reported average demand resulting stability in sponge iron prices.

According to SteelMint’s weekly price assessment, the latest export offers for 80 FeM sponge lumps by Indian producers are hovering at USD 390-395/MT which was last week at around USD 390/MT; CPT Benapole (land port of Bangladesh and India). On CFR basis, the offers are hovering at USD 415-420/MT, CFR Chhittagong, Bangladesh.

According to India’s largest sponge iron exporter to Bangladesh, the latest deals have concluded via road route at around USD 395-397/MT, CPT Benpole.

However, imported scrap offers to Bangladesh are falling consistently on price corrections in the global market. The latest offers are heard at USD at USD 380-385/MT for Shreded (containerized) and USD 360-365/MT for HMS from UK, CFR Chittagong, Bangladesh.

A mill owner based in Dhaka mentioned that “most of the producers have limited stock for raw materials, hence they are aggressively looking for scrap and sponge iron purchase. two bulk cargoes have been booked for Shredded grade scrap at the recently declined prices “ he added.

Indian domestic sponge offers fluctuates

Indian sponge iron prices may remain volatile on subdued demand by local mills. However, it seems that domestic sponge iron market may continue to be supported as there appear no signs of the scarcity in Iron ore easing out any time soon. The Indian Supreme Court’s order, directing Odisha’s major merchant Iron ore producer – Serrajuddin Mines to remain shut due to none payment of penalty, will maintain the shortage in supply of Iron Ore.

Current offers for FeM 78-80 Sponge iron (C-DRI) are hovering at INR 21,600-21,800/MT (USD 340-343) in Durgapur and INR 21,000-21,200/MT (USD 330-333) ex-Rourkela.

SteelMint stats shows surge in Indian sponge iron exports about 70% on Y-o-Y basis. India exported 0.39 MnT sponge iron during Jan-Oct 2017 against 0.26 MnT in the same time frame of 2016. Bangladesh remained the favorable export destination of Indian sponge iron exports during 2017 and imported about 50% quantity (0.19 MnT).