Indian sponge producers further strengthen their offers amid surge in inquiries.
SteelMint’s price assessment on 29 Jun for 78-80 C-DRI sponge are reported at INR 15,000-16,600/MT (USD 230-255) ex-works. The prices surged about INR 100-300/MT on daily analysis & INR 300-500/MT (USD 4-8) on weekly assessment.
Market directions are on positive note, hence producers have kept offers strong, reported by trade participants.
Further few small sized sponge manufacturers in Central & Eastern regions mentioned that buyers are more interested in post GST delivery as there are rumors that prices may further move upwards.
Trade Updates
1. Sponge iron prices in Raipur increases by INR 200/MT. SteelMint’s Pellet based sponge (P-DRI) offers were assessed at INR 14,900/MT & DR-CLO based sponge iron offers at INR 17,400-17,600/MT ex-works, excluding excise duty of 12.5%.
2. Big manufacturers in Durgapur (eastern region of India) are offering FeM 78 C-DRI at INR 15,500-15,600/MT (Ex-Works, Excluding Excise Duty of 12.5%).
3. Odisha, Rourkela based small sized sponge manufacturers (100-300 TPD) are heard to be offering FeM 80 C-DRI mix material at INR 15,000-15,200/MT & 100% lumps at INR 15,300-15,500/MT ex-plant (excluding excise at 12.5%).
4. BMM Ispat, South India’s largest sponge producer have raised offers by INR 200/MT to INR 15,400/MT for FeM 80 P-DRI. However, another manufacturer in the region that is Sunvik Steels has rolled-over offers since couple of days; offering FeM 80 lumps at INR 15,500/MT. The prices are ex-plant, Bellary & excluding excise duty of 12.5%.
5. Indian Pellet exporters have raised offers on growing demand from Chinese steel mills. The fresh export offers are evaluated at USD 84-85/MT FoB which gained by USD 6-7/MT W-o-W.
Prices in INR/MT
Source: SteelMint Research
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