Indian sponge C-DRI offers today reached at INR 15,800-18,400/MT (USD 244-285) ex-works, with price fall of INR 200-700/MT D-o-D & INR 1,000-1,500/MT in week duration. The price fell in line with low inquiries amid falling prices of substitute product like scrap.
Notably, Melting scrap prices in the domestic market have started to fall since few days. For Instance, in the consuming regions like West & South parts of India corrected up to INR 1,500/MT (USD 23), W-o-W.
Overview of key regions
Central India: According to the renowned manufacturers in Raipur, P-DRI is trading at INR 15,800-15,900/MT and Sponge DR-CLO at INR 18,200-18,400/MT ex-plant.
East India: Rourkela based manufacturers reported demand of sponge iron is not good, which in turn led to fall in prices day on day by INR 500-700/MT to INR 15,800-16,000/MT for FeM 79-80 C-DRI mix material. It was also observed that selling pressure with the manufacturers is mounting gradually which may lead to further fall in prices.
South India: Price competition with scrap has led to correction in sponge prices. Currently, HMS domestic scrap prices in the market is at INR 18,000-18,300/MT & sponge C-DRI at INR 18,300-18,500/MT (both are basic & ex-Hyderabad prices). The smelters here mentioned they are majorly procuring scrap instead of high cost sponge.
Domestic sponge offers as on 20 Apr’17
| Particulars | C-DRI | D-o-D | W-o-W | P-DRI | D-o-D | W-o-W |
| Ex-Durgapur | 16,800 | – 250 | -1,100 | 16,250 | – 300 | -1,150 |
| Ex-Rourkela | 15,900 | – 700 | -800 | 0 | 0 | 0 |
| Ex-Raigarh | 16,400 | – 300 | -1,100 | 15,400 | – 400 | -1,100 |
| Ex-Raipur | 17,300 | – 200 | -1,100 | 15,850 | – 350 | -1,100 |
| Ex-Bellary | 17,500 | – 400 | -1,400 | 17,200 | – 400 | -1,300 |
| Ex-Hyderabad | 18,400 | – 100 | -700 | 18,300 | – 200 | -900 |
Prices in INR/MT
Source: SteelMint Research
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