Ironically, when steel prices across India are moving down, Sponge iron prices at Eastern India are showing upward trend owing to irregular supply of Iron ore & Coal.
On one hand, Iron ore has almost disappeared from merchant market, after the Supreme Court’s directive for suspending mines running under 2nd deemed renewal. On the other, Coal prices are boosting high owing to lesser quantity available in e-auction. Coal offers in domestic market have moved up to INR 500-1,000/MT in last few weeks, forcing manufacturers to look for imports.
Sponge manufacturers mentioned that there is limited scope of any major price correction looking at falling production.
Recently, Sponge iron prices have risen by INR 300-400/MT in Chhattisgarh, India’s one of the largest Sponge iron producing state. Sponge iron offers in Odisha & West Bengal have also shown strength on falling supply and high raw material cost.
Indian Sponge Iron Trade Prices as on 05 Aug, 2014
|
City |
Grade |
Price |
W-o-W |
M-o-M |
|
Rourkela |
78-80 FeM |
19,500 |
+ 50 |
– 50 |
|
Durgapur |
78-80 FeM |
21,000 |
0 |
+ 500 |
|
Raipur |
80 FeM |
21,800 |
+ 400 |
+ 200 |
|
Raigarh |
79-80 FeM |
21,200 |
+ 300 |
+ 200 |
|
Bellary |
75 FeM |
19,500 |
0 |
– 500 |
Basic prices in INR/MT; ED at 12.36%; VAT as applicable
Advance/next day payment
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