Today, domestic sponge market opened with marginal price change of INR 50-150/MT against last day trade. While, offers in south India remain under pressure due to sharp increase in prices during previous weeks amid few plants closure.
Currently, 78-80 FeM sponge C-DRI prices are hovering in the range of INR 10,300-12,800/MT and P-DRI within INR 10,100-12,400/MT ex-plant.
Manufacturers from east & south India reported that demand is still not supportive despite stability in prices. However, market participants anticipate that demand may improve in days to come due to seasonal low availability of material.
Domestic sponge offers as on 7 Jul’16
| Particulars | C-DRI | D-o-D | P-DRI | D-o-D | Current Premium | 1 Week earlier Premium |
| Ex-Durgapur | 11,100 | + 50 | 10,100 | + 100 | 1,000 | 1,000 |
| Ex-Rourkela | 10,300 | 0 | 0 | 0 | 0 | 0 |
| Ex-Raipur | 11,900 | 0 | 10,850 | + 100 | 1,050 | 1,100 |
| Ex-Bellary | 11,500 | – 100 | 11,050 | – 150 | 450 | 600 |
| Ex-Hyderabad | 12,800 | 0 | 12,400 | 0 | 400 | 400 |
Prices in INR/MT
Source: SteelMint Research
Key highlights
1. Raipur based large sponge manufacturers have kept offers unchanged for P-DRI & DR CLO material. Few agents mentioned P-DRI makers are providing discount on bulk purchasing.
2. Durgapur based sponge manufacturers have fixed minimum sales price of C-DRI at INR 11,000/MT and P-DRI at INR 10,000/MT. Today, few deals concluded at INR 11,100/MT for C-DRI in local market.
3. BMM Ispat in Karnataka has reduced offers by INR 300-400/MT. Current offers for 80 FeM P-DRI lump are assessed at INR 11,300-11,400/MT ex-plant.
4. Prakash Sponge, a prime grade sponge maker from Karnataka, is offering 80 FeM C-DRI lump at INR 12,000/MT and 75 FeM fines at INR 9,500/MT ex-plant.
5. Odisha based 150 TPD sponge manufacturer, Mahakali Ispat is offering 80 FeM C-DRI for outside state buyers at INR 10,600/MT ex-plant.
6. Shiv Shakti Steel, a 200 TPD sponge manufacturer in Hyderabad, offered 80 FeM C-DRI lump at INR 12,800/MT ex-plant. Also, it is offering billet at INR 21,500-21,600/MT ex-plant.
Leave a Reply