Indian sponge prices fell by INR 100-200/MT D-o-D and INR 400-600/MT W-o-W due to weak demand and high inventory.
As reported, manufacturers in east region (West Bengal and Odisha) are holding their sales and not willing to sell below offered prices. Current offers by Rourkela based manufacturers are assessed at INR 10,300-10,400/MT for local buyers. While, offers for out of the states i.e. north, west and central India are seen at INR 10,500-10,600/MT for 70:30 mix material (ex-plant). North India buyers remain skeptical due to bearish sentiments.
In central India, a large sponge manufacturer is heard to reduce offer in bulk sales by INR 200-300/MT. About 1,000 MT sponge DR-CLO (0-20 mm; 81-82 Fe) is heard to sold at INR 12,500-12,600/MT (payment advance) and pellet sponge (P-DRI) at INR 10,500/MT. Offers for lump are assessed at INR 13,000-13,100/MT.
South based sponge market registered a minor fall of INR 50-100/MT against last day closing. At present, offers for 80 FeM P-DRI are evaluated at INR 11,400/MT. While, the same grade C-DRI is available at INR 11,800/MT. Few prime grade makers are also offering the material at INR 12,000-12,200/MT to Maharashtra based buyers on ex-plant basis.
Most of the manufacturers reported that sponge operation and sales are not feasible as sales price is now INR 1,000-2,000/MT below costing, which may curtail production anytime soon.
Premium between sponge iron (C-DRI) and pellet sponge (P-DRI) in central India has increased to INR 1,600-1,700/MT, which was 1,550/MT last week. In eastern region, it has decreased to INR 1,000/MT and in south to INR 300-400/MT.
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