Sponge iron prices in Eastern region of India, which contributes almost 60 percent of total installed sponge iron capacity, have fallen down by INR 400-500/MT in a week’s time. However sponge prices in Western region firm up on limited supply of imported scrap
Indian sponge iron prices have shown some resistance after an increment last week. Prices are down by almost INR 400-500 per tonne in this week largely owing to weak demand in finished steel.Current offers are prevailing in the range of INR 18,200-20,200/MT (USD 290-320) on ex works basis.
Chhattisgarh is the largest sponge iron producing state in India with an installed capacity of over 11 million tonnes per annum. Prices have come down by INR 500 and currently being offered at around INR 20,200/MT on ex- works basis.
“Sponge prices have come down marginally, however there is no reason for prices to correct. There is shortage of iron ore in the market. Matter of the fact is miners like Rungta, Essel and NMDC have raised their ore prices by INR 200/MT. Downside looks limited.” said Mr G. Agarwal, senior executive, with one of the sponge iron unit based in Raipur, Chattisgarh.
On the other hand, sponge iron prices in India’s western region is firm due to consistent fall in imported scrap. At some places prices have also gone up by INR 200-300/MT. Induction furnaces in western region which are largely dependent on imports of scrap have been facing short fall due to weak Rupee and rising global prices.
Indian Sponge Iron Prices in INR/MT (Ex-Works) as on date 4th Dec 2013
| Region | Particular | Grade | Price (Basic) | Change | W-O-W |
| North India | Mandi Gobindgarh | 78-80 FeM | 22,500 | 0 | + 200 | ||
| East India | Rourkela | 78-80 FeM | 18,200 | – 100 | – 400 | ||
| Durgapur* | 78-80 FeM | 19,100 | – 200 | – 500 | |||
| Central India | Raipur* | 80 FeM | 20,200 | – 100 | – 300 | ||
| Raigarh* | 79-80 FeM | 19,300 | – 300 | – 600 | |||
| South India | Bellary | 75 FeM | 19,000 | 0 | + 400 |
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