Sponge offers in Karnataka, South India & Odisha, Eastern India is remain higher due to the strong demand. On D-o-D, the manufacturers have raise sponge prices by INR 300-500/MT (USD 4-8).
The sponge manufacturers in the respected regions claim that strong demand prevails from out of states owing to higher scrap prices amid scarcity for the material. They also added that, trades are easily taking place on significant price rise.
On buyers end, the smelters (Ingot/billet manufacturers) in West & North India mentioned that they are procuring more sponge as they are not getting bulk suppliers for scrap. If they receiving than the offers are too high for on time delivery for the material, they added.
In a week, Indian scrap prices surged up to INR 1,000/MT (USD 15) & on monthly premises by INR 1,200-2,500/MT (USD 18-37). And global scrap prices surge by USD 15/MT M-o-M.
It is analyzed that on the shortage or higher prices of scrap, the major benefits are to the Karnataka & Odisha based sponge manufacturers as they are the bulk suppliers of sponge iron to scrap based markets i.e. West & North parts of India.
According to the manufacturers in Odisha & Karnataka, out of total sponge iron productions, approximately 30-40% material is being supplied to North & Western parts of India.
Indian Sponge (C-DRI) prices as on 27 Feb’17
| Region | Particular/Delivery | Size, Grade, Origin | Taxes | Prices | D-o-D | W-o-W | M-o-M |
| East | Ex-Durgapur | Mix, FeM 78 +/-1 | ED 12.5%, VAT/CST Extra | 16,650 | 0 | 850 | 2,550 |
| Ex-Rourkela | Mix, FeM 80 +/-1 | ED 12.5%, VAT/CST Extra | 15,600 | 300 | 600 | 1,700 | |
| Central | Ex-Raigarh | Mix, FeM 80 +/-1 | ED 12.5%, VAT/CST Extra | 16,750 | 200 | 750 | 1,700 |
| Ex-Raipur | Mix, FeM 80 +/-1 | ED 12.5%, VAT/CST Extra | 17,600 | 100 | 700 | 2,250 | |
| South | Ex-Bellary | Lumps, FeM 80 +/-1 | ED 12.5%, VAT/CST Extra | 16,700 | 400 | 900 | 1,600 |
| Ex-Hyderabad | Lumps, FeM 80 +/-1 | ED 12.5%, VAT/CST Extra | 17,300 | 300 | 1,200 | 1,100 |
Prices in INR/MT
Source: SteelMint Research
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