Today, domestic sponge market has remained almost firm and showed a minute price fluctuations of INR 50-100/MT. Limited productivity and supportive demand have kept the offers at firm levels.
Currently, 78-80 FeM C-DRI offers are hovering in the range of INR 10,850-12,750/MT and P-DRI within INR 10,800-12,350/MT ex-works.
A south based manufacturer quoted, “Demand is better in the market but due to low production, supply chain has mismatched, which may maintain prices at firm level.”
Key highlights
1. Few Durgapur based large manufacturers are offering P-DRI in the range of INR 10,800-11,000/MT and C-DRI at INR 11,900-12,000/MT. The plants are not willing to sale material below this levels due to increase in captive consumption.
2. Sponge offers in Raipur remain firm at INR 11,300-11,400/MT for P-DRI, INR 12,400-12,500/MT for C-DRI and INR 13,200-13,400/MT for DR CLO. Limited sellers are available at this offers.
3. Jharsuguda (Odisha) based Shyam Metalics and Aryan Steel are heard to offer C-DRI at INR 11,300-11,400/MT. It is also heard that Shyam Metalics and Bhushan Steel are offering P-DRI at INR 10,400/MT ex-plant. The plants are majorly selling material to Raipur and Jalna.
4. A Karnataka based merchant seller, Apple Industries is offering billet at INR 20,800/MT and 80 FeM C-DRI lump at INR 12,000/MT ex-plant.
5. Amoda Steel & Iron, a 450 TPD sponge manufacturer based in Hyderabad, is offering 75 FeM C-DRI lump at INR 11,900-12,000/MT. Another sponge manufacturers from the same place namely Shiv Shakti Steel and Reactive Metals are offering the same grade C-DRI lump at INR 12,700-12,800/MT ex-plant.
6. BMM Ispat in Karnataka has closed its P-DRI sales. An official mentioned that production has been reduced due to raw material crisis. They are expecting that sales will re-open within few days.
7. A prime grade sponge manufacturer, Sunvik Steels in Karnakata has kept offers unchanged. Current offers for 80 & 82 FeM C-DRI are INR 12,400/MT and INR 12,800/MT ex-plant respectively.
8. Prakash Sponge sold 80 FeM C-DRI lump at INR 11,900/MT ex-plant (Karnataka). Mostly deals were concluded to Silvasa and Kerela; the respective freight via road is INR 1,250/MT and INR 1,650/MT.
Indian sponge offers as on 28 Jul’16
| Particulars | C-DRI | D-o-D | P-DRI | D-o-D | Current Premium | 1 Week earlier Premium |
| Ex-Durgapur | 11,800 | – 50 | 10,800 | – 50 | 1,000 | 950 |
| Ex-Rourkela | 10,850 | – 100 | 0 | 0 | 0 | 0 |
| Ex-Raipur | 12,400 | + 100 | 11,350 | 0 | 1,050 | 1,000 |
| Ex-Bellary | 11,700 | + 100 | 11,250 | + 50 | 450 | 500 |
| Ex-Hyderabad | 12,750 | + 50 | 12,350 | + 150 | 400 | 400 |
Prices in INR/MT
Source: SteelMint Research
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