Post a long duration, sponge offers in south India have gained by upto INR 300/MT. Since the starting of Jul’16, offers have been fluctuating in the range of INR 11,800-12,000/MT ex-plant, Karnataka. However, the manufacturers have now raised offers to INR 12,200-12,400/MT for 80 FeM C-DRI lump.
Besides, offers in Hyderabad have been firm within INR 12,600-12,700/M since last 15-20 days for the same grade material, which have now increased to INR 13,000-13,100/MT in today’s trade.
Manufacturers have surged their offers owing to shortage of material, which is due to production cut and shutdown of plants by few large manufacturers. As per sources, ILC Iron, Trivesta Sponge and few more medium size sponge makers have closed their operations. BMM Ispat, a large manufacturer, has also cut its production by around 50%; the plant has production capacity of 2,300 TPD.
Increasing raw material prices i.e imported iron ore (Kumba lump) and coal is an another threat that is supporting manufacturers to keep offers strong. During a week, imported Kumba lump offers and South African coal (RB2) prices increased by around USD 5-6/MT (INR 300-400/MT). Current offers are assessed (CNF India) for Kumba lump at USD 72/MT for Aug’16 deliveries and South African coal at USD 60-61/MT for Sep’16 deliveries.
Key highlights of South India
1. As per purchasers, BIOP has increased offers for 82 FeM C-DRI lump by INR 200-300/MT to 12,600-12,700/MT ex-plant.
2. BMM Ispat is offering 79 FeM P-DRI at INR 11,700-11,800/MT ex-plant. The plant has recently started sales earlier around 10-12 days. There were no offers by the manufacturers due to less availability of material.
3. Sunvik Steels, who largely sales sponge to Maharashtra, has also increased offers by INR 300/MT to INR 12,700/MT for 80 FeM C-DRI and INR 13,100/MT for 82 FeM C-DRI lump, ex-plant (Karnataka).
4. Prakash Sponge yesterday sold 80 FeM C-DRI lump at INR 12,200/MT ex-plant (Karnataka). Mostly deals were concluded to Silvasa and Hindupur. Few deals were concluded with south based Adi TMT and South Malabar. The respective freight via road is INR 1,250/MT and INR 650/MT.
5. Apple Industries is offering billet at INR 21,000/MT and sold 82 FeM C-DRI lump at INR 12,250/MT ex-plant, Karnataka. The manufacturer is mostly selling material to nearby markets like Hindupur and Bangalore.
6. Hyderabad based Amoda Iron is trading 75 FeM CDRI lump at INR 12,300/MT. An another manufacturer from the same place namely Shiv Shakti Steel is also offering 80 C-DRI lump at INR 13,200/MT and billet at INR 21,200/MT ex-plant.
Leave a Reply