Sponge offers across major Indian markets further fell by INR 50-200/MT D-o-D.
Sponge manufacturers reported that they are reluctant to cut prices as there are limited purchasers and the buyers are willing to purchase it on cheaper prices.
Current offers for 80 FeM C-DRI are as follows- INR 15,000-16,000/MT (USD 222-237) in South India, INR 14,800-15,300/MT (USD 220-226) in Central region & INR 14,000-14,200/MT (USD 207-210) in East India. While P-DRI offers are within INR 14,000-15,700/MT (USD 207-232) ex-works.
Trade Updates
1. According to the trade participants in Raipur, the sponge stock is mounting day by days as the sales in the out of States is limited since couple of weeks. Smelters based in West & North India are the bulk purchaser of produced sponge in the Raipur and currently there ample availability of scrap at competitive prices in the region and have turned manufacturers interest for the purchase of scrap. However, it is analyzed that sponge manufacturers in Raipur are likely to maintain offers in same levels looking at recent increase in Iron ore prices by State based miner namely NMDC.
2. Durgapur based, Rashmi Metaliks one of the large manufacturer has further lower C-DRI prices to INR 14,000/MT. Trade participants in the market added further price pressure in sponge iron looking at lull trade activities in both sponge & billet.
3. Bhaskar Steel and Ferro Alloy Ltd offered 80 FeM C-DRI lump through CST billing at INR 14,000/MT. Also offering billet at INR 23,000/MT ex-plant (Odisha).
4. Bonai (Odisha) based Mahakali Ispat is offering 80 FeM C-DRI at INR 14,200/MT on CST billing and INR 14,000/MT for VAT billing, ex-plant.
5. A day before, Sunvik Steels in Karnakata has reduced prices by INR 350/MT. Offering 80 & 82 FeM C-DRI are INR 15,100/MT and INR 15,600/MT ex-plant.
6. BMM Ispat in Karnataka has kept offers unchanged; 80+ FeM P-DRI lumps are at INR 15,000/MT ex-plant.
7. Dhruvdesh Metals offered 80 FeM P-DRI lumps at INR 14,700-14,800/MT ex-plant.(Karnataka)
8. Apple Industries is offering billet at INR 24,700/MT and sold 80 FeM C-DRI lump at INR 15,000/MT ex-plant, Karnataka. The manufacturer is mostly selling material to nearby markets like Hindupur and Bangalore.
9. Premium between C-DRI and P-DRI in Central, East & South India has remain firm to INR 1,000-1,100/MT, INR 400-500/MT & INR 300-350/MT W-o-W.
Domestic sponge offers as on 2 Feb’17
| Particulars | C-DRI | D-o-D | W-o-W | P-DRI | D-o-D | W-o-W |
| Ex-Durgapur | 14,000 | – 100 | -500 | 13,550 | – 100 | -500 |
| Ex-Rourkela | 14,000 | 0 | -200 | 0 | 0 | 0 |
| Ex-Raipur | 15,250 | – 200 | -550 | 14,200 | – 150 | -550 |
| Ex-Bellary | 15,000 | 0 | -450 | 14,700 | 0 | -400 |
| Ex-Hyderabad | 16,000 | 0 | -300 | 15,650 | – 50 | -450 |
Prices in INR/MT
Source: SteelMint Research
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