On monthly average basis, Indian sponge offers climbed up by INR 1,000-1,700/MT M-o-M in Sep’16. Highest price rise was recorded in central and south India.
Expensive iron ore and coal amid logistic issues led to rise in sponge iron prices. In addition, heavy rainfall in east India affected sponge production, which was an another plus point for Indian sponge market.
Odisha and Jharkhand, which considered as the large suppliers of sponge iron in central, west and north India. The state based manufacturers reported that there was low production owing to ongoing monsoon season.
Major price rise in sponge iron was seen in Raipur and Bellary (central & south India) by upto INR 1,700/MT, following the price rise of INR 900-1,300/MT in Durgapur and Rourkela. During the month, prices also hit 11 months high levels. The similar price level was last seen in Oct’15.
On monthly average basis, 78-80 FeM C-DRI prices are assessed at INR 13,350/MT (+7.45%) ex-Durgapur, INR 14,150/MT (+13.67%) ex-Raipur, INR 12,800/MT (+14.41%) ex-Rourkela and INR 13,800/MT (+13.43%) ex-Bellary. The similar price level was last seen in Sep’15.
Monthly average sponge (C-DRI) prices
| Month | Bellary | M-o-M | Durgapur | M-o-M | Raipur | M-o-M | Rourkela | M-o-M |
| Apr’16 | 12,200 | -400 | 12,050 | -400 | 12,900 | -250 | 11,350 | -150 |
| May’16 | 11,650 | -550 | 11,300 | -750 | 12,300 | -600 | 10,700 | -650 |
| Jun’16 | 11,550 | -100 | 11,400 | +100 | 12,100 | -200 | 10,450 | -250 |
| Jul’16 | 11,650 | +100 | 11,500 | +100 | 12,150 | +50 | 10,650 | +200 |
| Aug’16 | 12,150 | +500 | 12,400 | +900 | 12,450 | +300 | 11,200 | +550 |
| Sep’16 | 13,800 | +1,650 | 13,350 | +950 | 14,150 | +1,700 | 12,800 | +1,600 |
Prices in INR/MT
Source: SteelMint Research
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