Indian Sponge prices have fallen by INR 200-400/MT W-o-W. Current offers are hovering in the range of INR 19,000-21,300/MT (USD 315-355/MT) on Ex-Plant basis.
Sponge manufacturers are under pressure over short supply of Iron ore along with rising Coal prices in domestic market. Most of them have mentioned if situation persists like this for a week, many plants will shut down.
Markets see support at these Levels- Manufacturers
Speaking to Sponge iron manufacturers across India, SteelMint assessed that prices should find resistance at these levels looking at deteriorating supply of Iron ore & Coal.
Manufacturers also stated they have shifted towards imported Coal and currently receiving offers for South African (RB-2) Coal, having fixed carbon content of 52% at around USD 80-81/MT CFR India on High Sea Sales (HSS) basis, for which delivery will be made in the month of August, 2014.
Current Sponge Offers
|
Place |
Grade |
C-DRI |
P-DRI |
Plant-wise Sponge Offers |
|
Rourkela |
78-80 |
19,000 |
– |
80 FeM Sponge offers at INR 21,100-21,200/MT delivered Raipur |
|
Jharsugda |
79-80 |
– |
18,300 |
Jharsuguda to Jalna (Maharastra) freight by road is INR 1,700/MT |
|
Raigarh |
79-80 |
20,600 |
18,600 |
Pellet Sponge offers at INR 19,400/MT delivered Raipur |
|
Raipur |
80 |
21,200 |
19,400 |
Vandana offering C-DRI (0-20) at INR 21,000/MT and DR-CLO (C-DRI) at INR 21,800/MT |
|
Durgapur |
78 |
20,500 |
19,000 |
Durgapur to Mandi freight is at INR 2,600/MT |
|
Bellary |
75 |
19,700 |
18,300 |
BMM offers 75 FeM P-DRI at INR 18,000MT |
|
Hyderabad |
77 |
– |
19,800 |
Hyderabad based Manufacturers offering 77 FeM Sponge pellet at INR 19,800/MT; buying seen at around 19,600/MT |
Note: All prices are basic in INR/MT on Ex-Plant basis
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