SteelMint learnt from trade participants that Indian Sponge iron export deals remained thin for Bangladesh owing to Ramadan season and sufficient stock with the local mills.
Bangladesh is the major buyer of Indian sponge iron export. Currently due to Ramadan festival the mills are running low on utilisation resulting in thin buying of the key raw materials – sponge iron & scrap. The mills in Bangladesh melts 3-5% sponge iron & rest is scrap either taken domestically or imported to produce a ton of hot metal.
As per SteelMint weekly assessment, the latest export offers of Indian origin Sponge iron lumps FeM 80 is hovering at USD 355-360/MT CPT Benapole port (dry port of India & Bangladesh) & USD 375-380/MT CFR Chittagong, Bangladesh.
A Kolkata based exporter stated, small deal were seen in current week at close to USD 357/MT CPT. However, on this prices negotiation is high, owing to low buying interest, he added.
SteelMint also learned that, presently sponge iron manufacturers in Eastern India – Jharkhand & Odisha are willing for export bookings amid improved price realization on depreciation of Rupee against US Dollar. Indian Rupee is currently trending near 17-month low.
India’s sponge iron export in 2017 increased by 85% year-on-year and recorded at 0.55 MnT, in which exports to Bangladesh stood at 0.25 MnT which contributes about 45%.
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