Following price corrections in billet, the Indian sponge manufacturers have also slightly reduced prices.
Against last day trades the prices of sponge iron registered fall by INR 100-200/MT. While, billet offers corrected by INR 200-500/MT.
Today, offers for 78-80 FeM C-DRI mix material are reported – Central India – Raipur at INR 16,200/MT (-100), East region – Durgapur at INR 15,100/MT (-300), Rourkela at INR 14,300-14,500/MT (-100) & in South India – Bellary at INR 15,500-15,700/MT(0); ex-works.
Merchant sponge manufacturers in East India, Odisha mentioned slight selling pressure on them due to lesser sales on decreasing IF/EAF production as an impact fall in prices.
A supplier who supply sponge to Western India, Maharashtra stated, “Sponge price are likely to remain range bound or may fall gradually looking at weak buying by smelters in Western India”.
Notably, the standalone billet plants & hot rolling mills in Western, South & Northern parts of India have limited their raw material purchases on expectation that scrap in domestic market might increase as there are few upcoming bulk scrap shipments. This may result further price pressure in semis as well as raw materials.
Source: SteelMint Research
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