Indian Sponge Market See’s Slight Price Correction, D-o-D

The sponge manufacturers have reported price fall of INR 50-200/MT on 24th Jan’17 against the last day trade. Limited purchase inquiries amid price correction in billet led to the decline in sponge prices.

Overview of key markets

Raipur: P-DRI prices in the market are trading in the range of INR 14,800-14,900/MT ex-plant. The smelters in Raipur are also procuring sponge C-DRI (79-80 FeM) from Odisha at INR 15,600-15,700/MT FOR.

Durgapur: Shyam Sel heard to offering P-DRI at INR 14,000-14,100/MT; fall by INR 100-200/MT against trades on 23-Jan. Another manufacturer in the market is offering C-DRI at INR 14,500/MT; no trade activities have been assessed at this offer price.

Rourkela: The manufacturers reported demand of sponge iron is not good, which in turn led to fall in prices by INR 200/MT to INR 14,300-14,500/MT for 79-80 FeM C-DRI mix material. Sponge Manufacturers may come under pressure from Smelters as billet prices are down by 400-500/MT D-o-D.

Bellary: Price competition with scrap has led to correction in sponge prices. Currently HMS domestic scrap prices in the market at INR 14,500-15,000/MT & sponge C-DRI at INR 16,500/MT (both are basic & ex-works prices). The smelters here mentioned they are majorly procuring scrap instead of high cost sponge.

Trade Highlights
1. OCL Iron & Steels in Odisha having sponge production capacity of 1,100 TPD is offering C-DRI (Mix) at INR 14,500/MT ex-plant (CST billing)

2. BMM Ispat yet to open fresh offer. The company’s last offers was at INR 15,400/MT for 80 FeM P-DRI, ex-plant.

3. Sunvik Steels has offered 80 & 82 FeM C-DRI are at INR 15,950/MT and INR 16,350/MT ex-plant.

4. Prakash Sponge a prime grade sponge manufacturer has also reduced prices; offering 80 FeM C-DRI lump at INR 15,500-15,600/MT, ex-plant.

Domestic sponge offers as on 24 Jan’17

Prices in INR/MT
Source: SteelMint Research