Indian Sponge Iron Export Offers Stable Despite Limited Inquiries

Indian sponge iron export offers to Bangladesh are more or less firm even though the buying interest is unstated currently.

According to an exporter, the smelters in Bangladesh are currently have sufficient stock, hence they are not in hurry to book material at current higher offers. He further added that, the Indian sponge producer are also not interested for exports as they are fetching good margins to deal in domestic market.

SteelMint’s price assessment for 80 FeM sponge lumps in current week stood at USD 350/MT which is similar against last week at USD 345-350/MT; CPT Benapole (land port of Bangladesh and India). Meanwhile, offers for Nepal are reported at USD 315-320/MT ex-works which is equivalent to INR 20,200-20,500/MT similar to domestic offers (Durgapur).

The manufacturers in Durgapur – East India reported, few small deals for Nepal and no fresh deals have taken place for Bangladesh.

Indian sponge iron exports are largely made for Bangladesh and since prices have started to gain, the smelters in Bangladesh have narrowed purchases for both sponge iron & scrap and are in wait & watch mode.

If the trade participants are to be believe the manufacturers in Bangladesh have sufficient stock of Sponge iron & Scrap till the mid or end of Jan 2018. So, it can be presumed that fresh purchase may start by end of the Dec’17 for Jan-Feb deliveries.

India exported about 170,000 MT sponge iron to Bangladesh and about 36,000 MT to Nepal from the total exports of 340,000 MT during Jan-Sept 2017.

Reference prices as on 20th December 2017

Source: SteelMint Research