Sponge iron prices across major Indian market have remained firm, except in southern market. Current offers for 78-80 FeM sponge are assessed at the same levels of INR 11,300-13,300/MT, ex-works in domestic market. The market is firm on the grounds of slight fluctuation in iron ore prices and thin buying in local market.
In general, out of total sponge makers in south, about 70% of manufacturers use iron pellet amid easy availability and low cost of investment (compared to booking and dispatch to iron ore). But, currently pellet sponge makers in the region are tussling with high iron pellet prices. In a week, where pellet sponge prices declined by INR 600-700/MT, iron pellet prices remained stable.
Sponge makers in south India shared, “We are planing to go for strike to oppose higher prices of iron pellet, which is the key raw material to produce pellet sponge. We are unable to purchase iron pellet at current price of INR 4,300-4,400/MT (Fe 62%) and INR 4,500-4,600/MT (Fe 63%). Where pellet sponge prices reduced by upto INR 1,000/MT in a month, iron pellet prices remained stable.”
Current semis prices in Hyderabad are — 80 FeM P-DRI at INR 12,700/MT (-650) and MS billet at INR 21,700/MT (-300). Meanwhile in Bellary, 78 FeM C-DRI at INR 12,800/MT (0) and P-DRI at INR 11,600/MT (-450).
C-DRI and P-DRI prices with W-o-W
| Particular | Grade (FeM) | C-DRI | W-o-W | P-DRI | W-o-W | Premium (C-DRI – P-DRI) |
| Ex-Mandi Gobindgarh | 78 +/-1 | 15,400 | -300 | 14,000 | +100 | 1,400 |
| Ex-Durgapur# | 78 | 12,600 | -200 | 11,600 | -50 | 1,000 |
| Ex-Rourkela | 78 | 11,600 | + 150 | 11,000 | NA | 600 |
| Ex-Raigarh# | 80 +/-1 | 12,300 | 0 | 11,300 | 0 | 1,000 |
| Ex-Raipur | 80 +/-1 | 13,300 | +250 | 12,050 | +50 | 1,250 |
| Ex-Bellary | 78 +/-1 | 12,800 | 0 | 11,600 | -450 | 1,200 |
Prices in INR/MT
Source: SteelMint Research
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