Sponge iron prices today have remained almost stable in domestic market, expect in south India. Manufacturers in south India, especially in Hyderabad have reduced their offers by INR 300/MT for 80 FeM C-DRI.
Minor impact of increase in NMDC price is seen in sponge prices in Raipur. Shutdown of furnaces in central India, Raigarh continues to submerged sponge prices. Prices are likely to remain under pressure in central and east India due to limited demand and increase in production.
At present state of affairs, 78-80 FeM C-DRI prices are hovering in the range of INR 11,200-14,200/MT and the same grade P-DRI within INR 11,300-13,200/MT.
C-DRI & P-DRI prices with premium
| Particular | C-DRI | D-o-D | P-DRI | D-o-D | Premium | 1 week earlier premium |
| Ex-Durgapur | 12,300 | 0 | 11,300 | 0 | 1,000 | 1,000 |
| Ex-Rourkela | 11,200 | – 50 | NA | NA | NA | NA |
| Ex-Raipur | 13,400 | + 100 | 12,250 | 0 | 1,150 | 1,150 |
| Ex-Bellary | 12,450 | + 50 | 11,950 | 0 | 500 | 600 |
| Ex-Hyderabad | 13,700 | – 300 | 13,200 | – 100 | 500 | 800 |
Prices in INR/MT
Source: SteelMint Research
Current trade dynamics
1. A Raipur based sponge manufacturer has offered DR CLO 50% lump and 50% fines at INR 14,100/MT, 70:30 at INR 14,200/MT and 100% lumps at INR 14,300/MT. However, Odisha based suppliers are heard to sold 80 FeM C-DRI at INR 12,600-800/MT FoR Raipur (70:30 ratio). Only few domestic sellers have quoted the material at INR 13,200-13,400/MT.
2. Odisha based Jay Jagannath Steel & Power is offering 80 FeM C-DRI lump at INR 11,800-100/MT (CST) ex-plant.
3. Shiv Shakti Steel, a 200 TPD sponge manufacturer in Hyderabad, is offering 80 FeM C-DRI lump at INR 13,700/MT ex-plant.
4. Karnataka based ILC Iron & Steel (350 TPD) has offered 80 FeM C-DRI lump at INR 12,300/MT, ex-plant
5. 80 FeM P-DRI offers similar in both Raipur and Bellary at INR 12,200-12,300/MT.
6. A Jalna based billet maker reported that he has received an offer to purchase 500 MT P-DRI lump from Raipur at INR 11,900/MT ex-plant. General offers for mix material are in the range of INR 12,100-12,300/MT.
Leave a Reply