Sponge iron manufacturers are looking forward for price correction in iron ore & pellet owing to steep fall in sponge iron prices.
Merchant sponge iron makers are seeking for further price corrections of key raw materials. After discussion with few mid-size sponge makers across the country, it was deduced that there’s disproportionate price correction between iron ore & pellets and sponge iron. On one hand, sponge iron prices corrected up to INR 1,500/MT M-o-M. On the other hand, iron ore & pellet prices have corrected by INR 200-700/MT M-o-M.
“Margins are consistently squeezing, which makes it difficult for a sponge manufacturer to operate. We have to either cut our production or shut down our plant.” said a sponge maker in eastern India
Indian Sponge & Raw Material Prices
|
P-DRI |
Markets | Grade | Prices | W-o-W | M-o-M |
| Ex-Durgapur# | 78 FeM | 14,450 | -200 | -1,450 | |
| Ex-Rourkela | 78 FeM | 14,000 | 0 | -600 | |
| Ex-Raipur | 80 +/-1 FeM | 14,800 | -50 | -750 | |
| Ex-Bellary | 78 +/-1 FeM | 14,000 | -350 | -800 | |
| Ex-Hyderabad | 77 FeM | 14,600 | -100 | -1,200 | |
|
C-DRI |
Markets | Grade | Prices | W-o-W | M-o-M |
| Ex-Durgapur# | 78 FeM | 16,300 | -400 | -1200 | |
| Ex-Rourkela | 78 FeM | 14,900 | 0 | -600 | |
| Ex-Raipur | 80 +/-1 FeM | 16,700 | -50 | -200 | |
| Ex-Bellary | 78 +/-1 FeM | 15,350 | 0 | -750 | |
| Ex-Hyderabad | 84 FeM | 17,000 | -300 | -1,000 |
# delivered
Payment next day/advance
Source:SteelMint Research
Prices as on 3 June’15
|
Iron ore |
State | Miner | Size | % Fe | Price | W-o-W | M-o-M |
| Odisha# | Rungta | 5-18 mm | 63 | 5,150 | 0 | -400 | |
| Odisha# | Rungta | Fines | 63 | 2,250 | 0 | -150 | |
| Odisha# | Serajuddin | 5-18 mm | 63 | 4,350 | 0 | -250 | |
| Odisha# | Serajuddin | Fines | 63 | 2,050 | 0 | -100 | |
| Chattisgarh# | NMDC | 6-40 mm | 65 | 3,050* | NA | 0 | |
| Chattisgarh# | NMDC | Fines | 65 | 1,960* | NA | 0 | |
|
Pellet |
State | Markets | Size | % Fe | Price | W-o-W | M-o-M |
| Odisha# | Barbil | 6-20 mm | 63 | 4,500 | 0 | -300 | |
| Odisha | Jharsugda | 6-20 mm | 63 | 5,100 | -50 | -300 | |
| Odisha# | Keonjhar | 6-20 mm | 63 | NA | NA | NA | |
| Chattisgarh | Raipur | 6-20 mm | 63 | 5,900 | -50 | -50 | |
| West Bengal | Durgapur | 6-20 mm | 63 | 5,000 | -250 | -700 |
* 15% royalty extra
# Prices loaded to wagons
Source:SteelMint Research
Prices as on 3 June’15
NMDC yet to open prices for June’15 deliveries
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