Indian sponge iron export offers to Bangladesh have risen by USD 10-15/MT in the current week. However, the fresh deals are yet to take place as buyers remain fairly skeptical over higher offers, SteelMint learnt from trade participants.
The latest offers for 80 FeM sponge lumps stood at around USD 345-350/MT against last assessment of USD 335/MT; CPT Benapole (land port of Bangladesh and India).
The manufacturers in East India reported, few small deals during last week at around USD 333-335/MT, CPT Benapole.
Bangladesh is a major buyer of Indian sponge iron and since prices have been on a rise, smelters there have limited their raw material purchases i.e. Scrap & Sponge iron and are waiting for price corrections to take place.
Indian exported about 340,000 MT sponge iron during Jan-Sep 2017. In the total exports, Bangladesh imported about 50% material (170,000 MT) and rest is being exported to Nepal (11.89%), Thailand (9.47%), Indonesia (8.75%) and Kuwait (8.46%).
Imported Scrap Offers
Imported scrap offers to Bangladesh have moved up further by USD 5-10/MT on strong global scrap prices. The latest offers stood at USD 350-355/MT for HMS, USD 360-365/MT for Shredded & USD 365-370/MT for PnS, CFR Chittagong. However, buying interests remain silent on increased prices, importers stated.
Further, Ship breaking prices moved up by USD 10/MT (W-o-W). The latest ship breaking prices for general cargo was assessed at USD 410/LDT and USD 430/LDT, CFR Bangladesh for tanker cargoes.
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