Indian Sponge iron prices have fallen by INR 200-400/MT in a week after being resistant for quite some time and despite rising Iron ore prices in domestic market. Subdued demand and low margins have forced many small and mid sized Sponge units to cut down their production drastically.
Market Highlights
- Rungta Mines, one of the largest merchant miner in Odisha/Jharkhand, has raised Iron ore fines & lump prices by upto INR 300/MT last week
- Iron ore situation remains critical in Odisha & Jharkhand. Most of the Sponge manufacturers opt for shutdown
- The state government is seeking reply from 18 closed mines on show cause notice issued. Participants also expect that the state government may allow liquidation of stock from these 18 mines this week in order to increase state revenue
- Pellet manufacturers in Barbil have reduced prices by INR 200/MT to INR 8,000/MT. While, buying remains weak
- Sunglag & Pushit Steels to import capesize vessel from Brazil at Krishnapatnam. Vessel expected to arrive this week
- Sponge manufacturers in Southern India anticipate some relief in supply of Iron ore as Sesa Sterlite may resume operations soon
- Imported Scrap prices find some support at these levels. HMS 1&2 assessed at USD 315-20/MT CIF India from Europe and Middle East. HMS 1&2 from West Africa assessed at USD300-305/MT CIF India
Trade Wise
- Shyam Sel is offering C-DRI at INR 21,000/MT and P-DRI at 19,000/MT; advance payment (both FeM 78; delivered to Durgapur)
- Jharsuguda (Odisha) based manufacturer sold C-DRI (lump; FeM 80) at INR 21,100-21,200/MT delivered to Raipur
- One of the largest manufacturers based in Bellary (Karnataka) is offering P-DRI (FeM 75) at INR 17,200/MT on regular payment (7-10 days) basis
C-DRI & P-DRI offers as on 17 Nov, 2014
| Region | Particular | Grade (FeM) | C-DRI | W-o-W | M-o-M | P-DRI | W-o-W | M-o-M |
| North India | Mandi | 78-80 | 24,000 | 0 | – 200 | 22,000 | – 300 | – 400 |
| East India | Rourkela | 78-80 | 19,250 | – 250 | – 750 | – | – | – |
| #Durgapur | 78-80 | 21,000 | – 300 | – 600 | 19,000 | – 300 | – 650 | |
| Central India | Raipur | 80 | 20,600 | – 400 | – 700 | 19,000 | – 200 | – 300 |
| #Raigarh | 79-80 | 20,700 | – 300 | – 500 | 18,700 | – 300 | – 400 | |
| South India | Bellary | 75 | 18,900 | – 400 | – 100 | 17,000 | – 300 | – 300 |
| Hyderabad | 79-80 | – | – | – | 18,200 | – 300 | – 600 |
Basic prices in INR/MT
#delivered; rest all ex-works
Next day/advance payment
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