Within a week, sponge offers in Bellary (south India) have increased significantly by INR 1,100-1,200/MT on account of shorty supply of iron pellet.
In the starting of current week, P-DRI in Bellary was being offered at INR 13,500-13,600/MT and C-DRI at INR 14,100-14,200/MT. However today, offers for 78 FeM P-DRI reached at INR 14,600-14,700/MT and C-DRI at INR 15,100-15,200/MT.
According to trade sources, BMM Ispat and MSPL are the only suppliers present in the market and offering material at INR 4,900-5,000/MT (basic) for Fe 63%. Thus, sponge manufacturers in the region namely Minera, Dhruvdesh, including few others have also increased their P-DRI offers by INR 800-900/MT in a week duration. However, BMM Ispat, which is considered as a price trend decider for P-DRI, is not offering the material in open market.
Market participants expect that shortage of sponge iron will remain in south India amid anticipated further price rise in iron pellets.
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