Sponge iron prices in Indian market stable since last week due to improved demand in major markets.
Domestic sponge iron across India is trading almost at the same level since last week as demand improved amidst power supply issues of furnace operators resolved in major markets.
While C-DRI in domestic market is hovering in the range of INR 14,500-16,500/MT, ex-works, P-DRI is being offered at INR 13,000-14,000/MT ex-works; almost unaltered against last week’s offer.
Induction operators based in central and western belt mentioned that they prefer to purchase P-DRI from Odisha as prices are cheaper there than Raipur and Bellary market prices.
Similarly, few induction operators based in Maharashtra, Punjab and Uttar Pradesh (U.P) shared that they prefer to buy sponge from Odisha. Because Odisha based manufacturers are offering material at prices competitive by INR 1,000-1,500/MT for both P-DRI and C-DRI, compared to same grade material offered by Raipur and Bellary based makers.
Limited scope of correction in sponge prices is expected in near-term, as production during monsoon production will be constrained.
Highlights
1. Pellet prices in Barbil almost unchanged since a week
2. Karnataka iron ore auction on 4 July’15 received an overwhelming response; 93% material sold
3. 78-79 FeM P-DRI is offered at INR 12,800-13,00/MT ex-Jharsuguda. While, the same grade material is available in Raipur at INR 14,000/MT and in Bellary at INR 13,800-13,900/MT
4. Imported scrap offers to India may further decline in July’15 owing to PSIC norms as buyers not willing to purchase material at current prices
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