Sponge iron prices soared to INR 12,800-15,000/MT level which was last seen 7 months before in Feb’16. East India logistics issue and high coal prices are the major reasons heard.
Today, offers for 78-80 FeM C-DRI by east based manufacturers are at INR 12,800-13,000/MT ex-Rourkela, and INR 13,400-13,500/MT in Durgapur. Whereas the same grade material are offered at INR 14,000-14,200/MT ex-Raipur & INR 13,800-14,000/MT ex-Bellary. Prices increased by INR 700-900/MT in a week.
Scrap based mandi’s Maharashtra and North India buying remain high from central, east and south India due to low availability of imported scrap.
Freight charges are approx INR 2,300-2,500/MT from east to north India and from central & south to west region, the charges are INR 1,000-1,300/MT for Jalna & INR 1,800-2,000/MT for Mumbai.
It seems that sponge prices are likely to remain positive. SteelMint learned that iron ore and pellet prices may inch up by INR 200-300/MT. Shortage of pellet could be seen in the next couple of months as domestic plants already booked for Sep’16 and Oct’16 delivery.
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