Indian Sponge iron prices showed some resistance at current levels owing to low inventories and short supply of Iron ore lumps from Odisha.
Sponge iron prices which rose sharply after the Supreme Court’s order on 16 May, 2014 had been falling since last week. Currently, prices looked to have stabilized at current levels of INR 19,500/MT to 21,500/MT on Ex-Plant basis.
Current Prices of Sponge Iron (C-DRI) & Pellet Sponge (P-DRI)
|
City |
C-DRI |
Change |
P-DRI |
Change |
|
Rourkela |
19,700 |
+ 200 |
– |
– |
|
Durgapur* |
20,500 |
0 |
19,200 |
+ 200 |
|
Raipur* |
21,700 |
+ 100 |
20,000 |
+ 100 |
|
Raigarh* |
21,200 |
0 |
19,700 |
0 |
|
Bellary |
20,000 |
0 |
18,700 |
0 |
|
Hyderabad |
– |
– |
19,500 |
0 |
Price Difference between P-DRI & C-DRI increases
With short supply of Iron ore lumps from Odisha has widened the price gap between P-DRI & C-DRI. Difference has moved up to INR 1,400-1,600/MT, which used to be INR 1,000-1,100/MT earlier.
“There is certainly a shortfall of Iron ore lumps in market after the Supreme Court suspended some big merchant mines in Odisha. However, ample availability of Pellets has offset the Iron ore shortage. Most of us have shifted to Iron Pellets for Sponge making,” said a Sponge iron manufacturer based in West Bengal.
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