Indian Sponge Offers Fall Amid Weak Trades by INR 100-300/MT, D-o-D

Sponge offers in Central India have registered fall of INR 200-300/MT and in East & South regions by INR 50-100/MT; D-o-D.

Today, offers for 78-80 FeM C-DRI in the domestic market are assessed at INR 14,100-16,500/MT (USD 207-243/MT) and P-DRI within INR 13,800-16,500/MT ex-works.

Trade Updates of Key markets

Central India: large manufacturers in Raipur are offering P-DRI in the range of INR 14,600-14,800/MT ex-plant. Limited purchase reported at this offers. The smelters in Raipur are also buying C-DRI from Odisha at INR 15,200-15,400/MT FOR; similar grade material in Raipur offering at INR 15,500-15,700/MT ex-plant.

East India: Rourkela based manufacturers are offering 80 FeM C-DRI mix material in the range of INR 14,000-14,200/MT through CST billing. The manufacturers have mentioned that sales are majorly to Raipur & Jalna. According to the traders, there are limited inquiries as buyers looking for further corrections in current prices.

South India: Sunvik Steels in Karnataka is one of the renowned manufacturers in the state has kept offers unchanged since week duration; 80 FeM C-DRI prices at INR 16,250/MT & 82 FeM at INR 16,650/MT ex-plant. Rayen Steel in the same place whose production is 100-120 MT per day offered 80 FeM C-DRI at INR 15,700/MT ex-plant.

According to the sources in the Maharashtra, JSW’s gas based DRI prices are at INR 17,500-18,000/MT ex-plant, Dolvi (Maharashtra). The company’s material is majorly purchased by Alloy Steel manufacturers within the State .

In outlook market players are anticipating for further price pressure on sponge market looking at lull trade activities as well falling coal prices in the global market. In a week, RB2 coal offers slip by USD 3/MT, to USD 79/MT CNF India & USD 69/MT FoB South Africa.

Domestic sponge offers as on 10 Jan’17

Prices in INR/MT
Source: SteelMint Research