Indian Sponge Iron Market – Week 45

• Sponge iron offers up by INR 300-400/MT in Durgapur
• Odisha based miners raised Iron fines prices by INR 300-400/MT; lumps unchanged
• NMDC reduces Iron lump prices by INR 200/MT; fines unchanged
• Plants are operating at below 50% capacity across India owing to scarcity of Iron ore & Coal
• Scrap imports may rise because of falling Sponge iron production

Sponge manufacturers based in Durgapur (West Bengal) have raised offers by INR 300-400/MT on the backdrop of low production and rise in Iron fines prices by private miners based in Odisha/Jharkhand.

It was observed that quite a lot of Sponge units have cut down their production on account of rising Iron ore/Pellet prices.

Iron Pellet deliveries are not adequate, which in turn has prompted few Sponge plants to halt their operations. There is low availability of Sponge iron and fewer offers from manufacturers. Shyam Sel is offering Pellet at INR 8,200/MT but has limited stock along with low dispatches. While, Ankit Metaliks is offering it at INR 7,900/MT but fewer delivery and Rashmi Metaliks has limited inventory.

“At present, Sponge plants are not holding Iron ore stock in Durgapur. Currently, P-DRI is being offered at INR 19,500/MT and C-DRI at INR 21,500/MT,” said a Sponge manufacturer based in West Bengal.

Iron ore supply still remains critical in eastern region of India. Experts believe that falling Scrap prices in the global market will lead to more imports as Sponge manufacturers are not in a situation to reduce offers.

Indian Sponge Iron Prices as on 03 Nov, 2014

Prices are basic on ex-works; #delivered
Payment next day/advance