Indian sponge iron export price assessment slightly fell by USD 3-5/MT W-o-W in recent deals to Bangladesh, SteelMint learned from market participants.
Sources reported that, in last couple of days over 5,000 MT sponge iron (FeM 80, lumps 100%) export deals were concluded to Bangladesh at an average price of USD 270/MT CPT Benapole (dry port of India & Bangladesh), which is equivalent to USD 285/MT CFR Chittagong, Bangladesh.
SteelMint’s last week price assessment was at USD 275/MT CPT Benapole, which was equivalent to USD 288-290/MT CFR Chittagong. Thus with fresh deals, the price range slightly fell by USD 3-5/MT.
“Demand remained less than the average due to lessened productions by major mills in Bangladesh, following bearish domestic demand in finished steel products. Hence as per necessity the mills are booking material” shared couple of Kolkata (eastern India based) exporters.
Meanwhile, imported scrap offers to Bangladesh reported firm amidst no aggressive buying activities. SteelMint’s price assessment for Shredded scrap in containers from UK is presently stands at USD 295/MT, CFR Chittagong more or less unchanged from last week’s report, with few bookings via containers reportedly being concluded at around USD 296-297/MT CFR.
Indian domestic sponge iron prices to remain strong
Sponge iron prices in Indian domestic market are expected to remain strong on account of high cost raw materials & substitute products as well along with sufficient orders among sponge producers.
As per assessment, Odisha iron ore prices moved up by over INR 400/MT (USD 6) in Nov’19. Coal prices have moved up by INR 500-700/MT. Thus, this has grew production cost of sponge units by almost INR 1,000/MT. However in this duration sponge iron prices volatile by around INR 300-500/MT in major locations. Hence anticipations are high, recent surge production cost to reflect in price range of sponge iron in the coming days.
The fresh offers of Sponge C-DRI (FeM 78-80) in domestic market reported at INR 16,500-16,700/MT (USD 231-234) ex-Rourkela (eastern India), INR 16,600-16,800/MT (USD 232-235) ex-Bellary (south India) & INR 17,400-17,600/MT (USD 243-246) ex-Raipur in Central India, excluding of 18% GST.
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