Domestic sponge makers have shifted towards iron ore from pellet, leading to rise in sponge iron supply in central and eastern markets. Alongside, premium between C-DRI and P-DRI has declined in these regions.
In the present state of affairs, Indian sponge makers have shifted towards cheaper iron ore from pellet. Sponge manufacturers have recently increased their iron ore buying, leading to increased sponge iron supply in central and eastern markets.
Currently, C-DRI (80 FeM) prices in central India are hovering in the range of INR 15,900-16,000/MT and P-DRI (80 FeM) at INR 14,00-14,100/MT (basic prices, advance payment) with weekly price correction of INR 450-550/MT.
On the flip side, south market has remained almost stable this week.
Premium between sponge iron (C-DRI) and pellet sponge (P-DRI) in central India has declined to INR 1,600/MT, which was 1,800-2,000/MT earlier. In line, it has fallen to INR 1,000/MT in east India, which was INR 1,200-1,500/MT previously.
In terms of iron ore, a trade source confirmed that about 30 rakes of iron ore (DR-CLO) have been booked from NMDC this month post the miners reduced prices by INR 400/MT for the same grade.
Recently, pellet prices fell by INR 200/MT after Odisha based miners declined iron ore prices sharply by INR 400/MT last week.
A sponge maker based in central India stated, “We expect miners may reduce iron ore prices further as sponge prices are declining continuously.”
Current C-DRI & P-DRI prices with premium
| Particular | Grade (FeM) | C-DRI | W-o-W | P-DRI | W-o-W | Premium (C-DRI – P-DRI) |
| Ex-Mandi Gobindgarh | 78 +/-1 | 18,200 | – 200 | 16,700 | – 100 | 1,500 |
| Ex-Durgapur# | 78 | 15,100 | – 900 | 14,100 | – 600 | 1,000 |
| Ex-Rourkela | 78 | 14,500 | + 100 | 13,200 | – 500 | 1,300 |
| Ex-Raigarh# | 80 +/-1 | 14,900 | – 600 | 13,500 | – 300 | 1,400 |
| Ex-Raipur | 80 +/-1 | 15,950 | – 550 | 14,100 | – 450 | 1,850 |
| Ex-Bellary | 78 +/-1 | 14,100 | – 200 | 13,100 | – 400 | 1,000 |
| Ex-Hyderabad | 82+ | 15,800 | 0 | 14,300* | 0 | 1,500 |
Basic prices in INR/MT
*77 FeM P-DRI prices
Source: SteelMint Research
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