Sponge iron prices in domestic market are anticipated to remain supported in line with steady demand & falling supply.
The major producers in Central India, Raipur stated limited supply over increase in captive consumption and downside seasonal capacity utilization.
As per reports, in Raipur near about 5-6 major sponge suppliers who’s merchant supply in the market more than 500 MT per day, out of which currently 2-3 producers are active and rest are either already have good bookings or stocking the material to soon increase there melting capacity for Billets.
It is understood to SteelMint, couple of integrated plants are planning to raise their Billet making facility from the coming month for about 300-400 MT per day.
Similarly, in East India – Durgaur & Odisha, where mills reported narrowed down output due to heavy rains. Also the participants stated as good bookings in hand the makers are planning to raise prices once Billet demand to rebound. The current offers for Sponge C-DRI hovering at INR 20,400-20,600/MT in Durgapur & INR 20,500-20,700/MT ex-Rourkela, for 78-80 FeM, mix material.
Coming to South market – Karnataka, where the manufacturers largely sell material to outside states, reported lessen inventories for key fuels like – Coal & Iron ore, hence operations are expected to halt soon if transporters strike remained for some time.
As per producers, due transportation strike, sourcing of Iron ore & Coal from the Mines/stockyard or port disturbed.
It is noted in the last couple of days, sponge prices in Karnataka, Bellary increased by around INR 200/MT. BMM Ispat the largest producer of Sponge iron in Karnataka has raised prices by INR 200/MT to INR 18,400/MT (ex-plant), for P-DRI lumps, FeM 80.
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