Today, sponge manufacturers have opened their prices with minor corrections of INR 100-200/MT against the previous closing. Trade remain thin as manufacturers buying hand to mouth and are in wait-and-watch situation. Besides, they are hoping to get a market direction with union budget 2016-17.
Presently, sponge iron prices are hovering in the range of INR 11,500-13,250/MT and pellet sponge within INR 11,050-12,200/MT.
Raw material, pellet prices in east India are under pressure due to limited buying and even few pellet makers are offering discount of INR 100-200/MT on bulk bookings.
C-DRI and P-DRI prices as on 23 Feb’16
| Particular | Grade (FeM) | C-DRI | D-o-D | P-DRI | D-o-D |
| Ex-Durgapur | 78 +/-1 | 12,550 | -200 | 11,550 | -200 |
| Ex-Rourkela | 78 +/-1 | 11,500 | 0 | NA | NA |
| Ex-Raigarh | 80 +/-1 | 12,150 | -100 | 11,150 | -100 |
| Ex-Raipur | 80 +/-1 | 13,250 | +50 | 12,200 | -50 |
| Ex-Bellary | 78 +/-1 | 12,000 | -100 | 11,050 | -100 |
Prices in INR/MT
Source: SteelMint Research
Trade Dynamics
1. A Raipur based large manufacturer, having 1.2 MnT pellet capacity and 0.8 MnT sponge capacity, is offering pellet sponge (P-DRI) at INR 12,100/MT and DR-CLO at INR 13,700/MT ex-plant. It also reported that sellers are not aggressive to sell the material at present price as they have earlier booked stock and currently eyeing to clear the inventory first.
2. Vandana Global in Raipur offered P-DRI at INR 12,500/MT, DR CLO (0-20 mm) at INR 14,100/MT and billet at INR 22,300/MT, ex-works; advance payment.
3. Odisha based Aryan Ispat & Power reported few deals for 80 FeM C-DRI to conclude at INR 12,100/MT ex-plant and INR 13,000/MT landed to Raipur.
4. Only few manufacturers are producing P-DRI in Indian markets like Raipur, Raigarh, Durgapur and Rourkela due to better realization in C-DRI.
5. At present, north India based smelters are majorly buying sponge from West bengal instead of Odisha.
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