Sponge iron prices remain unchanged at INR 19,500-22,000/MT (USD 320-360/MT) ex-works.
Sponge iron manufacturers hold on offers amid short supply of Iron ore in the market. Despite falling Billet & Ingot prices, Sponge iron offers have not corrected to a great extent.
Expensive Coal prices in the domestic market is the another reason for stability of Sponge iron prices. With lower quantity available in e-auction, Sponge units are forced to buy imported Coal at a higher price.
Last trade of South African Coal (RB-2) was heard to be settled at INR 5,500-5,600/MT (ex-port) from East Coast of India by a Raipur based manufacturer.
Speaking to manufacturers based in several parts of India, it was assessed that prices are likely to remain stable owing to raw material issues.
With deteriorating supply of Iron ore from Odisha, most of Pellet manufacturers have held their offers unchanged. However, few have raised their offers by INR 200-300/MT.
Due to uncertainty over mining in Odisha & Jharkhand, market participants are not anticipating any price fall.
On the other hand, Billet & Ingot manufacturers have claimed that their production cost is much higher than the current market prices. They have no other option left but to shutdown their plant.
Falling Indian Currency likely to support Steel Prices
Falling INR against USD is likely to support steel prices. Today, Indian currency fell over INR 61.21 against USD.
Sponge Trade Prices as on 09 Aug, 2014
|
Place |
Grade |
C-DRI |
P-DRI |
Plant-wise Sponge Offers |
|
|
Rourkela |
78 |
19,500 |
– |
80 FeM Sponge sold at INR 21,600/MT delivered to Raipur |
|
|
Jharsugda |
79-80 |
– |
19,200 |
Shyam Metalics is offering Pellet sponge at INR 19,200/MT; mostly selling to Raigarh & Raipur |
|
|
Raigarh |
79-80 |
21,300 |
19,500 |
Low availability of Sponge iron & Pellet sponge |
|
|
Raipur |
80 |
21,800 |
20,150 |
Dispatches have delayed owing to unavailability of Iron ore |
|
|
Durgapur |
78 |
21,000 |
19,300 |
Sponge iron prices up by INR 200/MT. Whereas, Ingot prices reduce by INR 600/MT W-o-W |
|
|
Bellary |
77-78 |
18,500 |
20,400 |
BIOP is offering Sponge iron (77 FeM) at INR 20,400/MT. BMM offering Pellet sponge (75 FeM) at INR 18,000/MT |
|
Note: All prices are basic in INR/MT on ex-plant basis.
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