Domestic sponge iron market has witnessed further downfall in prices amidst lull buying activities and weak global sentiments. Sponge prices have slumped by upto INR 800/MT and MS billet by upto INR 700/MT in a week’s time.
Raipur based manufacturers are offering DR-CLO (82 FeM) grade sponge at INR 15,700-16,100/MT and pellet sponge (P-DRI) at INR 13,500-13,700/MT. Supply of DR-CLO grade sponge may diminish as manufacturers are shifting from NMDC’s DR-CLO to Odisha’s iron ore due to low costing.
“Amid non-viability, out of 90 LC (Letter of Credit), about 70 LC are canceled by sponge makers, who generally purchase NMDC’s DR-CLO,” shared a regular buyer of DR-CLO grade sponge.
NMDC has not reduced DR-CLO prices from last 3 months. Whereas, sponge prices have fallen by INR 1,500-1,700/MT in the duration. Currently, sponge iron (C-DRI) is traded in Durgapur at INR 15,500/MT (78 FeM; – 100) and P-DRI at INR 13,500/MT. Besides, premium to sponge iron from pellet sponge has narrowed down due to increased availability of sponge iron.
South India based sponge market remained stable at INR 13,500-14,500/MT. However, the manufacturers are seeking for buyers as viability from Odisha to Maharashtra has improved as compared to Bellary owing to cheaper freight charges by INR 700-800/MT and sponge prices by INR 1,000/MT in Odisha.
C-DRI & P-DRI Prices as on 21 Jul’15
|
Particular |
Grade (FeM) | C-DRI | W-o-W | P-DRI | W-o-W |
Premium (C-DRI – P-DRI) |
| Ex-Durgapur |
78 |
15,500 | – 100 | 13,500 | – 50 |
2,000 |
| Ex-Rourkela |
78 |
13,600 | – 600 | 12,600 | – 200 |
1,000 |
| Ex-Raipur |
80 |
15,200 | – 400 | 13,700 | – 50 |
1,500 |
| Ex-Bellary |
82 |
15,400 | – 150 | 13,500* | – 100 |
1,900 |
| Ex-Hyderabad |
82 |
16,500 | – 400 | 14,500* | 0 |
2,000 |
Prices in INR/MT
*78 FeM grade price
Source: SteelMint Research
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