In central India, Sponge prices are standstill from last one month, at around INR 20,000-20,500/MT. But, East India improved buying sentiments as prices raised by INR 1,300/MT; South market up by INR 700/MT.

Reason behind Price stability in Central India :

• Stagnant production of MS Ingot/Billet has pressured Sponge prices
• Increased availability of Iron ore and Iron Pellet
• Improved demand for Ingot/Billet and Finished Steel is expected to trigger price hike, but increase in Sponge Pellet supply will keep prices stable
• Buying to remain firm: Increased construction activities against Nov’13 are the reason behind improved demand in Finish Steel products across India, which also support demand of Ingot/Billet & Sponge.

SteelMint learned from traders & brokers that prices are likely to be in range bound. In contrary Manufacturer believe price will increase gradually by INR 100-300/MT owing to good demand in Semi-finish (Ingot/Billet) market.

Eastern India

Durgapur: Market is running positively and buyers are willing to pay high price for Sponge iron, which has shot up by INR 1,300/MT in a month. Demand for Sponge iron & Sponge Pellet is up from what it was last month, which is a result of positive sentiment amongst Ingot/Billet manufacturers owing to good demand from Rolling Mills.

South India

Bellary: Recently, slight correction in prices has seen in the market after increased offers of INR 1,000/MT in a month’s time. Whereas, offers for Sponge iron & Sponge Pellet have came down by INR 200-400/MT W-o-W.

A manufacturer based in Bellary said, “Around 40-50% material is being sold to Maharashtra regions (Mumbai, Jalna, Wada, Nashik, Pune and also including other cities of Maharashtra) and the remaining material is sold to South and nearby states. Demand from these areas is more or less firm against Dec’13. In Maharashtra, buying of Finish Steel looks positive at present, resulting in improved demand. If demand of Finished Steel rises in these regions, there is a chance of prices hike. If not, market will remain standstill and there is no expectation of correction in prices.”