Indian sponge prices have moved up by INR 100-200/MT in east and south India. However, it has remained stable in central region.
Currently, 78-80 FeM C-DRI prices are hovering in the range of INR 11,050-13,200/MT and P-DRI within INR 11,200-12,800/MT on ex-plant basis.
A south based manufacturer reported, “On 27 Jul’16, the government issued a notification to pay 12% Forest Development Fee by iron ore purchasers, who haven’t paid since Dec’15, excluding NMDC and MML”.
After this notification, the manufacturers in this region have been started to increase sponge offers since last 2-3 days. Offers have gained by around INR 400-500/MT in this duration.
Domestic sponge offers as on 4 Aug’16
| Particulars | C-DRI | D-o-D | P-DRI | D-o-D | Current Premium | 1 Week earlier Premium |
| Ex-Durgapur | 12,350 | + 50 | 11,350 | + 50 | 1,000 | 1,000 |
| Ex-Rourkela | 11,050 | + 100 | 0 | 0 | 0 | 0 |
| Ex-Raipur | 12,400 | 0 | 11,200 | – 50 | 1,200 | 1,050 |
| Ex-Bellary | 12,100 | + 200 | 11,500 | + 100 | 600 | 450 |
| Ex-Hyderabad | 13,200 | + 200 | 12,800 | + 150 | 400 | 400 |
Prices in INR/MT
Source: SteelMint Research
Key highlights
1. An official of Raipur based integrated plant reported that if the furnaces will remain shutdown for over 1-week, selling pressure will increase. Post strike by induction furnace operators, sponge offers in Raipur had plunged down by around INR 200/MT.
2. Sponge offers in Durgapur are likely to come under pressure as few large manufacturers, who were the major buyers for sponge iron, have switched to purchase material from open market as their own production for sponge iron has resumed. Today in opening trade, P-DRI is traded by large manufacturers namely Rashmi Metalics and Shyam Sel at INR 11,500/MT. However in the 2nd half, offers have moved down to INR 11,300-11,400/MT.
3. Bhaskar Steel and Ferro Alloy are offering billet at INR 19,200/MT and 80 FeM C-DRI lump at INR 11,300-400/MT ex-plant, through CST billing (Odisha).
4. Odisha based 150 TPD sponge manufacturer, Mahakali Ispat is offering 80 FeM C-DRI for outside state buyers at INR 11,400/MT ex-plant.
5. Yeshashvi Steel & Alloys, a 150 TPD sponge manufacturer in Karnataka, is offering 80 FeM C-DRI lump at INR 12,200-12,300/MT ex-plant.
6. Shiv Shakti Steel, a 200 TPD sponge manufacturer in Hyderabad, has sold 800 MT 80 FeM C-DRI lump at INR 13,200/MT ex-plant. Deals have concluded with a Hyderabad based rebar manufacturer, Sugna Metals.
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