In a week’s time, sponge iron prices rose marginally by INR 100-200/MT, however, billet offers have surged sharply by INR 400-500/MT. The slight rise in sponge prices is mainly due to constant selling pressure on sponge manufacturers.
Currently, 80 FeM C-DRI lump offers are assessed in Odisha at INR 10,800-11,200/MT, Durgapur at INR 10,800-11,800/MT, Bellary at INR 11,000-11,800/MT and Raipur at INR 11,000-12,400/MT.
Trade highlights
1. Odisha based sponge makers namely Jagannath Sponge, Hari Sponge and Pooja Sponge mentioned that demand is quite healthy from outside states, mostly from north and west regions compared to local market. The manufacturers are offering 80 FeM C-DRI lump at around INR 11,200-11,400/MT ex-plant (Odisha). Freight from Odisha to Punjab is around INR 3,000/MT and to Maharashtra is INR 2,200-2,500/MT by road.
2. CG based sponge makers located in Raipur offered P-DRI at INR 11,100-11,300/MT. A plant having 1.2 MnT pellet capacity and 0.8 MnT sponge capacity is heard to offer P-DRI lump at INR 11,200-300/MT. While, C-DRI lump offers are heard to be at INR 12,000-12,400/MT and DR-CLO 70:30 (only one plant is offering) at INR 13,300-13,400/MT. All prices are on advance payment basis.
3. A south based large sponge maker, BMM Ispat and mediums sized kiln operators namely Yeshasvi Steel, ILC Iron are mostly trading sponge to nearby states like Goa, Telangana and Kerala. The offers are in the range of INR 11,400-11,600/MT for 80 FeM P-DRI lump.
4. South Indian pellet sponge makers are willing to purchase iron pellet below the current level of INR 4,350/MT, mentioning low demand in sponge pellet. However, iron pellet makers have kept their offers firm.
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