Domestic sponge market this week seems to be dull by prevailing mixed sentiments in market. Prices in most of the markets fell by INR 200-400/MT, but uptick in Raipur by INR 200/MT. Meanwhile, pellet sponge (P-DRI) prices have surged by INR 100-400/MT at pan India.
Today, Aryan Mining & Trading Corporation, which has recently resumed its iron ore sales, has increased iron ore lump prices by INR 200/MT and fines by INR 100/MT.
Alongside, Indian government in its notification on 4 Jan’16 has removed 5% export duty on pellets. This may bring out a benefit of INR 150-250/MT in pellet exports. At such a low global prices, pellet export will be viable only to shore based plants.
Current C-DRI and P-DRI prices with premium
| Particular | Grade (FeM) | C-DRI | W-o-W | P-DRI | W-o-W | Premium |
| Ex-Mandi Gobindgarh | 78 + | 16,050 | -50 | 15,550 | 450 | 500 |
| Ex-Durgapur | 78 | 13,250 | -50 | 12,250 | -50 | 1,000 |
| Ex-Rourkela | 78 | 12,000 | -200 | 12,200 | 300 | -200 |
| Ex-Raipur | 80 + | 14,100 | 200 | 13,000 | 100 | 1,100 |
| Ex-Bellary | 78 + | 12,600 | -400 | 12,000 | 200 | 600 |
Prices in INR/MT
Source: SteelMint Research
Trade-wise:
1. Odisha based sponge producer, Shree Hari Sponge has reduced offers by INR 300/MT and offering 80 FeM C-DRI lump at INR 12,200/MT ex-plant.
2. Raipur based iron pellet-cum-sponge manufacturer is offering P-DRI lump at INR 13,000/MT ex-works. Offers down by INR 100-200/MT from last week closing.
3. Amoda Iron & Steel in Hyderabad has kept offers unchanged for 75 FeM C-DRI lump at INR 12,800/MT ex-plant.
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