Odisha, one of the largest producer of sponge in India with an annual contribution of about 25-30% in country’s total DRI production. In FY17, the state produced around 6.80 MnT sponge iron which grew 6.92% Y-o-Y against 6.36 MnT in FY16.
In current circumstances, the manufacturers based in Odisha are selling material across the nation; prevailing cheaper offers are attracting buyers located in Central, West & North-East India.
Presently, Rourkela, Odisha based manufacturers are offering C-DRI mix material at INR 14,500-14,700/MT & 100% lumps at INR 14,800-15,000/MT Ex-plant through CST billing which is slightly fluctuated since couple of weeks.
In fresh, the suppliers in the state reported few deals for FeM 80 C-DRI mix material to Central region Raipur, Chhattisgarh at INR 15,800-16,000/MT FOR. And added trades were also happened for North-east regions Patna (Bihar) at INR 16,800-17,000/MT on FOR basis.
In Western part Jalna, Maharashtra based smelters are also procuring FeM 80 C-DRI lumps from Odisha at the price range of of INR 14,700-14,900/MT on ex-plant basis.
India is world’s largest sponge iron producer with an installed capacity of 47-48 MnT. In FY17 the country’s sponge iron production increased by 6.5% to 25 MnT approximately. While, DRI (Sponge) exports increase by 76.42% in FY17 compared to FY16.
Source: SteelMint Research
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