Stability Persists in Indian Sponge Market

Day on day report says that domestic sponge prices have remained almost stable, with a minute fluctuations of INR 50-100/MT in few regions. However in south market, sellers remain under pressure.

Currently, C-DRI (78-80 FeM) prices in India are hovering in the range of INR 12,000-13,500/MT and P-DRI (78-80 FeM) at INR 11,200-13,000/MT, with weekly price corrections of INR 200-300/MT. However, south market has almost remained stable this week.

Few Bellary based manufacturers reported a slight improvement in demand of sponge iron, but the local market remained same due to limited buying in finished steel. The state based manufacturers are offering 80 FeM P-DRI lump at INR 11,800-12,000/MT ex-plant.

Premium between sponge iron (C-DRI) and pellet sponge (P-DRI) in central India has reduced to INR 1,300-14,00/MT, which was INR 1,700-1,800/MT in last week. In-line, it has increased to INR 1,100-1,200/MT in east India due to few bulk P-DRI sellers. While in south, it remained stable to INR 300-500/MT.

Domestic sponge offers as on 26 Apr’16

Prices in INR/MT
Source: SteelMint Research

Trade-wise

1. In Raipur, 82 FeM DR-CLO  0-20 MM is sold at INR 13,400/MT, lump at INR 13,700/MT, but few inquiries have been received on the same.
2. BMM Ispat in Karnataka reduced prices and offered 80 FeM P-DRI at INR 11,700-11,900/MT.
3. Mahakali Ispat in Odisha is offering 80 FeM C-DRI at INR 11,500/MT in VAT and INR 11,700/MT through CST billing ( ex-plant). Mostly selling the material to Maharashtra.
4. Hare Krishna, a 300 TPD sponge manufacturer in Karnataka, has offered 80 FeM P-DRI at INR 11,600/MT (advance payment).
5. Amoda Steel & Iron, a 450 TPD sponge manufacturer based in Hyderabad, has offered 75 FeM C-DRI lump at INR 12,700-12,800/MT.
6. A Hyderabad based sponge iron manufacturer, Reactive Metals of India’s offers remain unchanged; 80 FeM P-DRI lump at INR 13,000/MT.