Significant rise in sponge demand amid higher prices of substitute products have strengthen Indian sponge prices and it touched to 15 Months high .
Current offers for 80 FeM C-DRI are as follows- INR 15,500-16,500/MT (US$ 225-245) in South India, INR 15,000-15,800/MT (US$ 220-235) in Central region & INR 14,200-15,300/MT (US$ 205-225) in East India. And P-DRI within INR 13,800- 16,200/MT (US$ 200-240) on ex plant basis, which is similar to prices in mid of Sep’15.
C-DRI Producer in Karnataka mentioned that, substitute products like imported scrap offers are too high at US$ 250-260/MT CNF India (INR 17,000-17,500/MT). Due to which the smelters are procuring more domestic sponge & scrap instead of imported material.
In general Inductions (EAF & IF) in South, West & Northern regions largely procures imported scrap and now they are preferring domestic sponge & scrap.
In present circumstances, the sponge manufacturers are not willing to deal at lower prices as they have booked material for rest of the current month. In outlook sponge price scenario will more depend on raw materials that is Iron ore & Coal price movements.
Source: SteelMint Research
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