Indian sponge makers have increased prices on the backdrop of low production. SteelMint learned that dispatch of sponge iron is pending by central & east based manufacturers.
Indian sponge makers, who were suffering due to sharp fall in sponge prices, now get some comfort over increasing sponge prices. In recent last 4 days, sponge offers have increased in Raipur by INR 300/MT, Durgapur by INR 400-500/MT, Rourkela by INR 200-300/MT and Bellary remains same.
Manufacturers in major market mentioned that they are easily getting bookings on quoted price. However, despite cheaper offers and additional discount in the last month, they were unable to find bulk purchasers.
Offers to remain supportive: Indian sponge makers are hopeful for further increase in Indian sponge iron market as smelters prefer sponge iron over imported scrap owing to high disparity in prices; sponge being cheaper. Also, due to low production, supply chain is mismatched as demand is better and supply is thin in the market. Odisha & Chhattisgarh, which produce around 45% of sponge iron out of the total production in India, are receiving healthy bookings from west & north based smelters.
Domestic sponge (C-DRI) offers since 13 Jul’16
| Particulars | Size/Grade | 13 Jul’16 | 14 Jul’16 | 15 Jul’16 | 16 Jul’16 | 18 Jul’16 | 19 Jul’16 | 20 Jul’16 |
| Ex-Bellary | 78 FeM | 11,550 | 11,600 | 11,600 | 11,600 | 11,600 | 11,600 | 11,600 |
| Ex-Durgapur | 78 FeM | 11,450 | 11,200 | 11,250 | 11,300 | 11,500 | 11,600 | 11,700 |
| Ex-Raipur | 80 FeM | 12,050 | 12,100 | 12,050 | 12,100 | 12,200 | 12,250 | 12,350 |
| Ex-Rourkela | 80 FeM | 10,650 | 10,600 | 10,600 | 10,500 | 10,650 | 10,700 | 10,800 |
Prices in INR/MT
Source: SteelMint Research
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