Post price rise since a week, today domestic sponge market has registered a minor price corrections of INR 100/MT in central, east and south regions. Seasonal raw material crisis and limited production are supporting Indian sponge market.
Karnataka based BMM Ispat, who produces around 60% of 0.73 MnT pa installed capacity, mentioned that production has been reduced due to raw material crisis as loading and unloading of raw materials are taking more time due to ongoing rainy season. The plant is not offering the material at present.
Highlights
1. Durgapur based sponge manufacturers kept offers almost firm at INR 10,700-10,800/MT for P-DRI and INR 11,700-11,800/MT for C-DRI. Manufacturers are unwilling to cut offers due to sufficient buying at current offers.
2. Merchant sponge sellers in Raipur are limited due to own consumption and plant maintenance by few manufacturers. Current offers for P-DRI are assessed at INR 11,300/MT, C-DRI at INR 12,100-12,300/MT and DR-CLO at INR 13,100-13,300/MT.
3. Odisha based large manufacturers namely Bhaskar Steel and OCL Iron are offering C-DRI at INR 11,100-11,200/MT for outside state buyers. Offers are unchanged against yesterday’s trades.
4. In the starting of current month, Jharkhand based Atibir Industries sold C-DRI lumps (80 FeM) to Bangladesh at around USD 200/MT (INR 13,500/MT), FoB Benapol port, an official reported.
5. Bhushan Power & Steel is offering 78-80 FeM P-DRI at INR 10,300/MT ex-Jharsuguda, Odisha. The plant has installed capacity of 6,000 MT per day sponge iron and at present running at 100% capacity, an official reported.
6. Jindal Steel kept offers unchanged at INR 11,200/MT ex-Raigarh for C-DRI fines.
7. Karnataka based Prakash Sponge sold 700 MT 80 FeM C-DRI lump and 75 FeM fines at INR 11,900/MT and INR 8,700/MT respectively. Deals were concluded to Hindupur based Adi TMT and Hindupur Steels & Alloys. As per the manufacturer, P-DRI sales were done mostly to Hindupur and Maharashtra. However, deals for C-DRI were made to Kerela.
8. Premium between C-DRI and P-DRI in central India has narrowed down to INR 900/MT, which was INR 1,150/MT last week. In east region, it remained firm to INR 1,000/MT and south to INR 500/MT.
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