Indian sponge prices have remained firm with marginal corrections today. However, selling pressure continues to mount up on manufacturers.
Today, domestic sponge market has opened with a little change of INR 100-200/MT. Whereas in south India, prices remained firm.
Sponge iron market has witnessed stability because of persistent soft buying. Current sponge iron (C-DRI) offers are assessed in the range of INR 11,400-13,500/MT and P-DRI within INR 10,900-13,000/MT.
“Sponge prices should increase after water issue get resolved. Imported scrap offers moved up by USD 25-30/MT in a month’s time, whereas, sponge prices undergone no major change”, shared a sponge agent in west India.
“Pellet sponge is now sold in bulk quantity, that too only once or twice in a week. Buyers are now booking 500-1,000 MT of material compared to earlier 200-300 MT”, said a P-DRI merchant producer in central India.
A major producer of sponge iron, Odisha has reported that material demand will raise slightly as compared to last week due to resumption of 6-8 units, including furnace, rolling mills and ferro in Raigarh.
A producer source from Karnataka stated, “As of now, there is very little buying interest and prices continue to slide as some manufacturers reduced offers to secure market demand, hoping for market recovery.”
Domestic sponge offers as on 19 Apr’16
| Particulars | C-DRI | D-o-D | P-DRI | D-o-D | Current Premium | 1 Week earlier Premium |
| Ex-Durgapur | 11,900 | – 150 | 10,900 | – 150 | 1,000 | 1,000 |
| Ex-Rourkela | 11,400 | – 200 | 0 | 0 | 0 | 0 |
| Ex-Raipur | 12,900 | + 100 | 11,250 | – 200 | 1,650 | 1,050 |
| Ex-Bellary | 12,100 | 0 | 11,800 | – 50 | 300 | 500 |
| Ex-Hyderabad | 13,500 | 0 | 13,000 | 0 | 500 | 600 |
Prices in INR/MT
Source: SteelMint Research
Trade wise offers:
1. Raipur based P-DRI lump sold at INR 11,300-400/MT to Maharashtra based manufacturer.
2. Sponge DR-CLO offers in Raipur are assessed at INR 13,500-13,700/MT, lumps at INR 13, 600-13,700/MT and 0-20 mm at INR 13,400-500/MT.
3. Karnataka based Prakash sponge from Chitradurga district is offering 78 FeM C-DRI at INR 12,200/MT and 75 FeM fines at INR 11,000/MT.
4. 80 FeM C-DRI lump is being offered at INR 12,000/MT by Karnataka based manufacturers namely ILC Iron & Steel and Hare krishna Sponge on ex-plant basis.
5. Odisha based sponge manufacturer, Kaushal Ferro is offering 80 FeM C-DRI at INR 12,500-12,600/MT, landed to Raipur.
6. Reactive Metals of India Limited (200 TPD) has offered 80 FeM P-DRI lump at INR 13,000/MT ex-plant (Hyderabad).
7. Shiv Shakti Steel, a 200 TPD sponge manufacturer in Hyderabad, has offered 80 FeM C-DRI lump at INR 13,500/MT ex-plant
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