Indian Sponge iron export offers to Bangladesh declined by USD 5/MT, as per SteelMint’s weekly assessment.
As per participants, export offers drop in line with poor inquiries as local steel demand in Bangladesh is weak currently due to ongoing monsoon season. Likewise falling imported scrap prices and depreciation of Indian rupee are the major key factors behind slump in sponge iron prices, as mentioned by market participants.
SteelMint’s current week assessment for export grade sponge iron stood at about USD 350/MT CPT Benapole (dry port of India & Bangladesh) and USD 370/MT CFR Chittagong (Sea port of Bangladesh). The prices fell by about USD 5/MT against last week assessment at USD 350-355/MT CPT and USD 370-375/MT CFR Chittagong.
As per a exporter in Kolkata, small lots of Sponge iron exports concluded during previous week at USD 350/MT CPT Benapole.
Further a supplier from South India stated deals of about 1,000 MT sponge iron exports at close to USD 370/MT CFR Chhittagong.
As per local mills in Bangladesh Imported scrap prices also fell by about USD 10/MT and currently hovering at USD 390-392/MT, CFR for Shredded of US origin and PNS around USD 392-395/MT, CFR from Brazil. HMS (80:20) offers from UK and Brazil are at USD 360/MT, CFR.
Indian Sponge prices have less scope to scale down
Indian Sponge iron prices have declined in the last week by INR 200-300/MT, however in current week it is supported in line with active local demand & rising prices of raw materials i.e. Iron ore, Pellets & Coal.
The market participants anticipates that the Indian domestic sponge prices to remain supported in line with seasonal low productions and scarcity of raw materials (Iron ore, Pellets & Coal).
Recently – Iron ore prices in Odisha increased by about INR 300/MT and pellet prices saw an increase in same proportion in Central & East India.
Current prices for Sponge iron lumps, FeM 78-80 (export grade) hovering at INR 21,000-21,500/MT ex-Odisha/Jharkhand & INR 22,300-22,500/MT ex-Durgapur, East India.
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