Sponge offers in South India have further come down by INR 200-300/MT, D-o-D. While, in rest of markets it reported price change of INR 50-100/MT.
Current offers for 80 FeM C-DRI are as follows- INR 13,500-15,000/MT (US$ 195-220) in South India, INR 12,500-13,500/MT (US$ 180-195) in Central region & INR 12,200-13,000/MT (US$ 175-190) in East India.
Trade participants reported that there is subdued trade activities in sponge market amid strong supply and volatile billet prices.
Trade Updates
1. Raipur based Integrated plants on yesterday have concluded bulk deals for P-DRI at INR 12,500/MT (ex-plant) for domestic buyers. Today, the plants have increased offers to INR 12,600-12,700/MT ex-plant. Sponge DR-CLO lumps is being offered by medium size plants at INR 14,600/MT ex-plant to Jalna based smelters.
2. Shyam Sel in Durgapur, West Bengal reported better trades. The company’s offer for P-DRI at INR 12,500/MT.
3. Mahakali Ispat from Odisha is offering 80 FeM C-DRI at INR 12,500/MT on CST billing, ex-plant.
4. BMM Ispat, a key supplier of sponge iron in South India has cut prices by INR 800-900/MT to INR 13,600-13,700/MT (ex-plant) for 80 FeM P-DRI. According to officials few deals is being concluded in Hyderabad at same price on ex-works basis.
Sponge prices as on 24 Nov’16
| Particulars | C-DRI | D-o-D | P-DRI | D-o-D | Current Premium | 1 Week earlier Premium |
| Ex-Durgapur | 13,000 | – 50 | 12,500 | + 50 | 500 | 600 |
| Ex-Rourkela | 12,200 | 0 | 12,000 | 0 | 200 | 300 |
| Ex-Raipur | 13,450 | + 100 | 12,650 | + 100 | 800 | 950 |
| Ex-Bellary | 13,500 | – 100 | 13,150 | – 50 | 350 | 350 |
| Ex-Hyderabad | 15,000 | – 300 | 14,600 | – 200 | 400 | 550 |
Prices in INR/MT
Source: SteelMint Research
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