Indian sponge prices further increased, day on day (d-o-d) basis by INR 100-300/MT and from the beginning of week by INR 800-1,100/MT.
Scarcity of Iron ore in West Bengal, East India, strong demand & higher scrap prices are continuously supporting Indian sponge market. Analyzing all these factors, trade participants are anticipating further strength in Indian sponge prices.
Iron ore crisis are mounting in East India as dispatches has temporarily been suspended by Odisha based two major merchant miners namely – KJS Ahluwalia and Kaypee Enterprises. The reason for temporary suspension of iron ore dispatches from the mentioned mines could not be confirmed yet.
A 350 TPD sponge manufacturers in Durgapur (West Bengal) mentioned that, if demand remains same sponge prices may shoot up further in an average by INR 500/MT coming week. Most of kiln is going to shut down due to clearance of raw material (Iron ore). Thus, for a time being, there will shortage of sponge iron in the state and it will directly impact on prices.
A Rourkela, based manufacturer cum trader reported few deals for FeM 80 C-DRI lump at INR 15,000/MT through CST billing on ex-plant basis. Moreover, in the beginning of week, the same material has been sold at INR 14,000-14,200/MT.
In Central India( Raipur), couple of large manufacturers are selling limited material (P-DRI) in the open market which used to sold approximately at 1,500 MT per day last week.
A sales head from an Integrated plant in Raipur stated “sponge prices to gain further as demand is good from in-state & outside state based smelters. Before opening the prices we received more inquiries for purchase” he added.
He further shared that sales has been closed post deal of 800-1,000 MT P-DRI at the price range of INR 15,300-15,400/MT (ex-plant).
South based sponge manufacturers reported, There is a good demand from Western region on prevailing shortage of scrap and high prices. According to them few bulk deals have been concluded for Maharashtra, Western India for FeM 80 C-DRI at INR 15,500/MT (ex-plant). And added short supply of material led to increased offers.
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