Sponge offers across major Indian markets remained high by INR 300-600/MT, D-o-D and stood almost at 2 years high. Currently, 78-80 FeM C-DRI offers are hovering in the range of INR 16,000-18,200/MT (USD 238-270) which is similar against offers seen in Apr’15.
Trade participants mentioned that, sponge iron (DRI) prices looked strong at present level and are expected to remain supported in the near term. They added that, upcoming Holi festival is a concern which may result in pressure in prices. However, looking at strong trade movement it seems that offers may remain on higher side as sellers are not willing to quote lower offers as they have booked material for rest of the current month.
Key highlights
1. Raipur based Integrated plants have open P-DRI prices with hike of INR 400/MT to INR 17,000/MT. However, the other producers are dealing for same material in the range of INR 16,800-16,900/MT.
2. According to Sources in Durgapur, Shyam Sel offers for PDRI at INR 16,200-16,300/MT and the small size manufacturers are offering C-DRI at INR 16,800-16,900/MT.
3. Bhaskar Steel offered FeM 80 C-DRI mix material at INR 16,000-16,200/MT & billet at INR 24,500/MT ex-plant (Odisha) through CST billing.
4. BMM Ispat, a price trend setter of sponge iron in South India has offered FeM 80 P-DRI at INR 17,500/MT ex-Bellary, Karnataka.
5. Sunvik Steels in Karnataka offered FeM 80 & 82 C-DRI are INR 18,000/MT and INR 18,400/MT ex-plant, respectively
6. ILC Iron & Steel, a 350 TPD sponge manufacturer from Karnataka hike offers for FeM 80 C-DRI lump by INR 200/MT to INR 17,800/MT ex-plant.
7. Karnataka based Apple Industries, who produces 8,000-9,000 MT billet per month and also a merchant seller, is offering billet at INR 27,500/MT and FeM 80 C-DRI lump at INR 17,400-17,500/MT ex-plant.
8. Om Shiv Shakti Steel in Hyderabad, has offered FeM 81+ C-DRI lump at INR 18,400/MT ex-plant.
Source: SteelMint Research
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