Domestic sponge market has registered a price fall of INR 100-200/MT against last day trades. Weak demand and falling billet prices have lowered down sponge prices, according to market participants.
78-80 FeM C-DRI offers are hovering in the range of INR 13,500-16,300/MT and P-DRI within INR 13,000-16,000/MT on ex plant basis.
Sponge manufacturers from Odisha reported that sponge prices may come under pressure as there are limited purchase enquiries coming from west and north India due to improved scrap availability in the regions.
Key Highlights
1. Raipur based manufacturers are preferring sponge from Rourkela and Raigarh due to cheaper landed price. Current offers are assessed at INR 15,000/MT for C-DRI mix material from Rourkela and INR 13,900-14,000/MT for P-DRI from Raigarh (FoR Raipur). Sponge manufacturers in Raipur are offering C-DRI at INR 15,200-15,300/MT and P-DRI at INR 14,200/MT ex-plant.
2. Odisha based Bhaskar Steel and Ferro Alloy are offering billet at INR 21,800/MT and 80 FeM C-DRI lump at INR 13,800/MT ex-plant through CST billing.
3. Durgapur based reputed manufacturers namely Rashmi Metaliks and Shyam Sel were offering C-DRI in the beginning of week at INR 13,800-13,900/MT. But today, they are offering the material at INR 13,400-13,500/MT, according to sources.
4. Sunvik Steels in Karnataka has kept its offers unchanged. The company is offering 80 & 82 FeM C-DRI at INR 15,600/MT and INR 16,000/MT ex-plant.
5. Prakash Sponge, a prime grade sponge maker in Karnataka, sold 80 FeM C-DRI lumps at INR 15,400/MT. Most of the deals have concluded to Hindupur and Kerela. Meanwhile, billet offers by an another manufacturer based in Bellary are heard at INR 23,500/MT.
6. Amoda Steel & Iron, a 450 TPD sponge manufacturer based in Hyderabad, is offering 75 FeM C-DRI lump at INR 14,700-14,800/MT.
7. Shiv Shakti Steel, a 200 TPD sponge manufacturer in Hyderabad, has offered 80 FeM C-DRI lump at INR 16,300/MT ex-plant. Also, the company has reduced its offers for billet by INR 500/MT at INR 24,000/MT ex-plant.
Domestic sponge offers as on 29 Sep’16
| Particulars | C-DRI | D-o-D | P-DRI | D-o-D | Current Premium | 1 Week earlier Premium |
| Ex-Durgapur | 13,500 | – 200 | 13,000 | – 100 | 500 | 600 |
| Ex-Rourkela | 13,700 | – 200 | 13,300 | – 50 | 400 | 650 |
| Ex-Raipur | 15,250 | – 50 | 14,200 | 0 | 1,050 | 900 |
| Ex-Bellary | 15,050 | – 100 | 14,650 | – 100 | 400 | 550 |
| Ex-Hyderabad | 16,300 | 0 | 16,000 | 0 | 300 | 550 |
Prices in INR/MT
Source: SteelMint Research
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