After prompt rise in prices, sponge market today reported a slight price corrections of INR 50-200/MT in contrast to last day trade.
On W-o-W, offers increased by INR 300-700/MT & M-o-M by INR 1,000-2,000/MT in Raipur, Durgapur, Rourkela & Bellary. The manufactures in these markets reported to SteelMint that sponge prices will remain strong looking at higher prices & shortage of other substitute products like pig iron & scrap.
According to the smelters in Raipur, sponge supply from Odisha has increased. Odisha sponge cost to FoR Raipur is at INR 14,300-14,500/MT for 80 FeM C-DRI. Whereas, in Raipur same grade material is being offered at INR 14,400-14,600/MT on ex-works. Integrated plants in Raipur are mostly selling P-DRI to Maharashtra market as scrap shortage continues in the state.
In Durgapur, offers fell slightly by INR 100-200/MT to INR 12,650/MT for P-DRI & INR 13,300/MT for C-DRI. There are limited supplies for P-DRI due to increased pellet exports. Integrated plants, which were offering P-DRI are now majorly trading C-DRI in the open market. Thus, the price gap between P-DRI & C-DRI has reduced to INR 700/MT, which was earlier at INR 1,000-1,100/MT.
Odisha based manufactures are offering 80 FeM C-DRI mix material at INR 13,200-13,400/MT, whereas same grade lumps are trading in the range of INR13,500-13,700/MT. Manufacturers reported that demand of CST billing is better than local buyers.
In Karnataka (South region), trade activities remain slow due to the Cauvery river case. Manufacturers in the region have kept offers firm despite poor trades. Currently, 80 FeM C-DRI are trading at INR 14,500/MT & P-DRI at INR 14,000/MT ex-plant. Billet offers in Hyderabad slipped by INR 500/MT to 23,000/MT.
Source: SteelMint Research
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