Indian Sponge offers further increased by INR 200-400/MT (USD 3-6) D-o-D & INR 1,000-1,200/MT (USD 15-18) in a week duration. Prices are moving up amid limited supply.
Current, offers for FeM 78-80 C-DRI are assessed at INR 15,800/MT (+200) ex-Durgapur, INR 16,800-17,000/MT (+200) ex-Raipur, INR 15,000/MT (+200) ex-Rourkela and INR 15,800-16,000/MT (+400) ex-Bellary. Price changes are mentioned on D-o-D (against last day trade) basis.
Since couple of weeks there is scarcity of Iron ore in the Central & East India based sponge units which are the major sponge producers in the country.
The manufacturers in East region mentioned most of the sponge plants switch to melt pellet as they do not have stock for Iron ore due to temporarily halted supply for Iron ore by Odisha based major merchant miners.
Similar condition is being analyzed in Central India, Chhattisgarh based sponge plants, where the manufacturers postponed their Iron ore purchases for Feb’17 due to price hike by NMDC up to 7% (INR 185/MT). Thus, the most of the manufacturers have reported less production due to limited stock of Iron ore.
Iron ore supply from NMDC’s Bailadila mines in Chhattisgarh has fallen considerably in Feb’17. According to railway movement data maintained with SteelMint, NMDC Chhattisgarh supplied only 6 rakes in Feb’17 (till 16 Feb’17) unlike 64 rakes in Jan’17.
It is to be noted that C.G. based sponge units contribute nearly 12% share in iron ore dispatches from NMDC’s Bailadila mines in Chhattisgarh. So far in this fiscal (till Jan’17), Chhattisgarh based units have procured 2.16 MnT iron ore from NMDC (C.G.).
South India based manufacturers also raise prices following the price hike in Central & East India. On, D-o-D, the manufacturer in Karnataka, South India increase prices up to INR 400/MT.
Plant wise offers in Karnataka
1. BMM Ispat in Karnataka has kept offers up by INR 300-400/MT; FeM 80 P-DRI is at INR 15,900-16,000/MT ex-plant.
2. Sunvik Steels in Karnakata has increased offers by INR 300/MT. Offering FeM 80 & 82 C-DRI are INR 15,900/MT and INR 16,300/MT ex-plant.
3. Dhruvdesh Metals has quoted offers for FeM 80 C-DRI mix material at INR 15,600-15,700/MT ex-plant (Karnataka): up by INR 200-300/MT.
4. ILC Iron & Steel (350 TPD) surge FeM 80 P-DRI offers by INR 200-300/MT to INR 16,000/MT ex-Bellary.
5. Prakash Sponge, a prime grade sponge maker in Karnataka sold FeM 80 C-DRI lumps at INR 15,800/MT ex-works.
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