Despite persistent decline in iron ore prices, sponge iron prices in central and east India have risen sharply by INR 500-900/MT. Imposition of safeguard duty is lending support to sponge iron prices across markets.
Alongside, manufacturers of sponge have raised offers, following increase in ingot/billet prices. Currently, C-DRI prices are assessed in Durgapur at INR 15,650/MT (78 FeM; +550), Rourkela at INR 15,000/MT (80 FeM; +200) and Raipur at INR 16,200/MT (80 FeM; +250).
In a 3-month’s time, iron ore prices declined by around INR 2,200/MT and pellet by around INR 1,700/MT in Odisha.
Most of the manufacturers reported that they are more inclined to produce C-DRI over P-DRI because of availability of raw material (lumps) at cheaper rates. Moreover, they are also receiving higher selling price of around INR 1,200-1,500/MT in C-DRI than P-DRI selling.
Amid low production of P-DRI, prices have improved sharply in Raipur and Durgapur; rise by INR 500-900/MT in a week’s time.
Meanwhile, lull trading activities in southern regions have kept prices almost stable in Bellary and Hyderabad.
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