Indian Sponge Iron Export Offers Unchanged to Bangladesh

The Indian sponge iron export offers to Bangladesh remain unchanged despite low trade, SteelMint learnt from market sources.

SteelMint’s weekly price assessment for 80 FeM sponge lumps in current week stood at USD 310/MT against last week offers of USD 310-315/MT, CPT Benapole (land port of Bangladesh and India). Offers for Chittagong, Bangladesh would be translate at USD 320-325/MT, CFR basis, similar to last week’s offers.

According to an Indian exporter “since couple of weeks there is stability in domestic steel prices in Bangladesh. In addition, the mills are assuming that imported scrap offers may come down gradually in days to come. Thus, the inquiries are limited for Indian sponge iron too”.

Sources based in Dhaka, Bangladesh also confirmed about stability in domestic steel prices. The domestic offers are reported for melting scrap at 30,000-31,000 Bangladesh Taka (USD 363-375) & Rebars 12mm for Grade60 at around 50,000- 52,000 Bangladesh Taka (USD 604-628), including local taxes at 17%. Further, Imported scrap offers are reported – at USD 325/MT for HMS 1  & USD 325-330/MT for Shredded scrap, CFR Chittagong (Bangladesh) basis.

Indian sponge iron manufacturers do no see sharp correction in sponge iron prices owing to expensive coal. Prices likely to remain range bound. Current offers for Indian sponge iron are at INR 17,100 to 17,300/MT for 78 FeM (Ex-Durgapur, West Bengal).

India is the world’s largest sponge iron producer with an annual production of about 24-26 MnT against installed capacity of 46-47 MnT. Sponge iron exports from the nation increase about 50% during Jan-Jul’17 to 270,000 MT in CY17 against same preceding CY16 at 180,000 MT.

Reference Prices as on 25th Oct 2017

Source: SteelMint Research