Indian sponge iron exporters resume trade after a gap of 2-3 weeks. Bangladesh based buyers have resumed buying sponge iron from India at levels lower than the previous week.
SteelMint’s current week assessment for sponge iron export grade stood at USD 345-350/MT CPT Benapole (dry port of India & Bangladesh), against last week offers of USD 355-360/MT. Similarly on CFR basis offers fell by about USD 10/MT and latest quote hovering at USD 365-370/MT against last week at USD 375-380/MT; CFR Chittagong.
SteelMint learned from market sources that deal of around 7,000-8,000 MT has been concluded at an average price of USD 345-348/MT, CPT Benapole. Mills are under negotiation and expect more deals to happen in coming weeks.
“Buying interest from Bangladesh based induction furnaces has improved on rising domestic steel prices and low inventories with mills. Also market expects domestic steel prices to remain firm post Ramadan festival, which is ending on 16th June.” said an exporter based in India.
Bangladesh is the largest buyer of Indian sponge iron. India exported around 550,000 MT sponge iron in the year 2017, out of which 255,000 MT was shipped to Bangladesh. In first two months of 2018, Indian exports to Bangladesh recorded at 56,000 MT.
Bangladesh Market as on 26th May
Ship Cutting Plates – BDT 42,000-43,000/MT (USD 495-507)
Ship Cutting Melting Scrap – 37,500-38,000 (USD 442-448)
Sponge Iron- USD 345-350/MT CPT Benapole, equivalent to USD 365-370/MT CFR Chittagong
Imported HBI- USD 380-390/MT CFR Chittagong
Imported Scrap (Shredded)- USD 390-400/MT
Concast Billet- BDT 52,000-53,000/MT (USD 614-626)
The domestic Scrap & Billet prices in Bangladesh rose up to BDT 2,000/MT (USD 24) in last week and was traded at BDT 37,500-38,000/MT (USD 442-448) for ship breaking & BDT 42,000-43,000/MT (USD 495-507) for Ship cutting plate 16mm & local concast Billet trades reported at BDT 52,000-53,000/MT. All prices are ex-works & including local taxes at 15%.
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