Slight Price Correction in Indian Sponge Market

Today, Sponge market has registered a price fall of INR 50-200/MT in Central & East India. However, in South it remain unaltered day on day.

The fresh offers for 78-80 FeM Sponge C-DRI are hovering in the range of INR 16,700-18,800/MT (USD 256-290) ex-works.

Central & East based manufacturers reported that they were not getting any bulk bookings at this present quote prices. And also added “market seems to be at firm level with limited trade activities.”

In context to raw materials, global coal (RB2 South African) & Indian Iron ore prices are firm currently.

Trade Log

1. The Induction operators in Raipur, Central India have halted their purchase of sponge, which has put pressure on the sponge manufacturers. The Ingot/billet manufacturers are taking interest for P-DRI at the price of INR 16,800-16,900/MT ex-plant. While, the sponge makers are offering same at INR 17,100-17,300/MT. It seems that, price pressure on sponge may mount further in days to come as trade activities are lull

2. The price trend setters in Durgapur namely Rashmi Metaliks & Shyam Sel sold out good quantity of P-DRI at average price of INR 16,700-16,900/MT yesterday. Hence, analyzing good response the manufacturers today quoted same material at INR 16,900/MT

3. Bhaskar Steel offered FeM 80 C-DRI lump at INR 16,800-17,000/MT & billet at INR 26,300-26,400/MT ex-plant (Odisha) through CST billing

4. Sunvik Steels in Karnakata have kept offers unaltered; offering FeM 80 & 82 C-DRI are INR 18,900/MT and INR 19,300/MT ex-plant

5. ILC Iron & Steel, a 350 TPD sponge manufacturer from Karnataka sold FeM 80 C-DRI lump at INR 18,600/MT ex-plant

6. Prakash Sponge sold FeM 80 C-DRI lump at INR 18,500/MT ex-plant (Karnataka). Mostly deals were concluded to Silvasa and Kerela; the freight via road is INR 1,300/MT and INR 1,700/MT, respectively

7. Dhruvdesh Metals has quoted FeM 80 C-DRI mix material at INR 18,200/MT ex-plant, Karnataka

8. Apple Industries, a merchant seller in Karnataka is offering billet at INR 29,300/MT and FeM 80 C-DRI lump at INR 18,400-18,500/MT ex-plant (Karnataka)

9. Hare Krishna, a 300 TPD sponge manufacturer in Bellary, Karnataka has offered FeM 80 P-DRI at INR 18,000-18,200/MT ex-plant

10. Shiv Shakti Steel (Hyderabad) offered FeM 80 C-DRI lump at INR 18,800-18,900/MT ex-plant. And billet at INR 29,000/MT ex-plant. While, the same grade P-DRI is being offered by Sunder Ispat in same place at INR 18,800/MT ex-plant

Domestic sponge offers as on 4 Apr’17

Prices in INR/MT
Source: SteelMint Research