Indian sponge iron export deals remained firm despite a marginal rise in eastern India domestic prices and strengthening rupee against dollar.
As per sponge iron exporters in eastern India, they had raised offers by USD 5/MT to USD 335/MT, CNF Chittagong. However deals remained at firm offers similar to last week at USD 330/MT CNF Chittagong, Bangladesh. The prices mentioned are for 78-80 FeM C-DRI & 100% lumps.
As per them, the smelters in Bangladesh are not in hurry to book material on higher prices, hence regular bookings have been made at similar prices to last week deals. It was also noted that, as the local finished steel demand in Bangladesh is not in good pace, the mills are looking raw materials at lower prices.
In addition, major Bangladeshi mills in recent bought bulk scrap cargoes. Hence it seems the stock is maintained with them and to be consider one of the major factor for average response for Sponge iron. According to sources, towards closing of last week, Bangladeshi steel mills have booked two bulk scrap cargoes of shredded scrap (total of approximately at 60,000-65,000 MT) from leading scrap suppliers in US west coast at around USD 360-365/MT, CFR Chittagong.
Sponge iron exports down by around 13% in Jan’19
Indian Sponge iron exports in Jan’19 reported fall of 12.8% M-o-M and stood at 69,651 MT as against 79,873 MT during Dec’18. However on yearly premises Jan’19 exports figures grew by 4.15% in comparison with 66,899 MT in Jan’18.
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