Sponge demand may improve this week amid high scrap offers because of depreciating INR against USD. While, fall in pellet prices have made P-DRI offers cheaper.
P-DRI Makers Dynamic to Increase Market Share
In present circumstance, central & eastern India based pellet sponge (P-DRI) makers are dynamically seeking bulk buyers. In central region, large sponge manufacturers such as Sarda, Bajrang, Godawari, including other secondary makers are offering their material in bulk quantities at low-price. Moreover in eastern region, Bhushan Power is offering P-DRI lower by INR 500/MT compared to Shyam Metalics and Arya Ispat’s offers.
A central India based P-DRI manufacturer stated, “Demand from North India is encouraging. Today, we have sold a bulk of 4, 000 MT pellet sponge.”
P-DRI Production may Ramp Up over Low-priced Pellet – Sources
Recently, Arya Iron & Steel reduced pellet prices by INR 200/MT to INR 4,300/MT (loaded to wagons, Odisha) owing to sluggish demand. It is also expected that pellet production across the country is likely to increase in near-term owing to better availability of material and increased price gap between iron ore and pellet.
Raw pellet (Fe 63%) in Barbil (Odisha) is currently being offered in the range of INR 4,300-4,400/MT (loaded to wagons, Odisha). While, iron ore (5-18 mm; Fe 63%) prices are assessed in the range of INR 3,400-5,150/MT.
Trade-wise
1. Arya Ispat offered 79 FeM P-DRI at INR 13,800/MT and Shyam Metalics 78 FeM at INR 14,000/MT
2. Bhushan Power sold P-DRI at INR 13,300-13,600/MT ex-works, as per sources
3. South based makers offered 78 FeM P-DRI at INR 14,000/MT ex-works
4. Arya Iron & Steel reduced pellet prices by INR 200/MT for June’15 deliveries
5. NMDC kept iron ore prices unchanged for June’15. Odisha miners also rolled over prices for June’15
6. Sponge buying improved in West Bengal owing to bulk buying of billet from Punjab
C-DRI & P-DRI Prices as on 9 Jun’15
| Particular | Grade FeM | C-DRI Price | W-o-W | P-DRI Price | W-o-W |
Premium (C-DRI – P-DRI) |
| Ex-Durgapur# | 78 | 16,400 | + 100 | 14,450 | – 50 | 1,950 |
| Ex-Rourkela | 78 | 15,000 | + 200 | 13,800 | NA | 1,200 |
| Ex-Raipur | 80 +/-1 | 16,600 | – 100 | 14,700 | – 100 | 1,900 |
| Ex-Bellary | 78 +/-1 | 15,350 | 0 | 13,900 | – 100 | 1,450 |
| Ex-Hyderabad | 77 | 16,900 | – 100 | 14,700 | + 100 | 2,200 |
Basic prices in INR/MT
#Delivered
Source: SteelMint Research
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