Indian Sponge prices are under pressure on the backdrop of consistently falling imported Scrap offers, which have corrected by another USD 5-7/MT this week.
Sponge manufacturers mentioned that despite scarcity of Iron ore, Pellets and coal, they are bounded to correct offers amid increasing interest for imported Scrap.
“Rising Iron ore and Pellet prices have made Sponge iron production unviable as cost of production is higher than selling price. So, we are selling the material at current market price level. We prefer to shutdown our plants till the situation gets better,” said a Sponge iron manufacturer based in eastern India.
Key Highlights
- HMS 1&2 Scrap from Middle East fall to USD 310-315/MT CIF Nhava Sheva (down by USD 5-7/MT since last week)
- Odisha government proposes to raise Iron ore production by 16 MnT from running mines. However, clearances are still not approved by the Central government. Supply of Iron ore may improve when production will raised by 16 MnT
- Pellet manufacturers are unwilling to correct offers owing to rising Iron ore prices in the domestic market. Current prices are assessed in the range of INR 7,800-8,000/MT (Barbil, Odisha) for Fe 63%
Trade Wise
- Singhal Steel offers Billet at INR 27,700/MT and C-DRI (lump; FeM 80) at INR 20,500/MT (both ex-Raigarh; advance payment)
- Shyam Metalics offers C-DRI (FeM 79) at INR 19,500/MT ex-Jharsuguda
- Monnet Ispat offers C-DRI (lump) at INR 20,700-20,800/MT (ex-Raipur) and Pig iron at INR 23,100/MT ex-Raigarh
| Particular | Prices in INR/MT |
| Sponge Iron (C-DRI); ex-Raipur | 20,600-20,800 |
| Pellet Sponge (P-DRI); ex-Raipur | 18,700 |
| Sponge Iron (C-DRI); ex-Durgapur | 21,000 |
| Pellet Sponge (P-DRI); ex-Durgapur | 19,000 |
| Iron Ore Fines, Fe 63%; Odisha (FoR siding) | 3,900 |
| Iron Pellets, Fe 63%; Odisha | 8,000-8,200 |
| HMS 1&2 Scrap; CIF Mumbai | USD 310-312/MT |
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