SteelMint’s benchmark sponge iron prices drop by INR 500/t ($7), further drop less likely

Benchmark sponge iron (P-DRI) prices have declined further by INR 500/t to INR 24,400/t ($334) exw Raipur (central India) due to limited spot trades. The manufacturers have floated offers at INR 24,400-24,600/t, however a total of around 1,500 t deals have been confirmed at INR 24,300-500/t exw. According to the sponge makers, offers are less likely to fall further due to higher pellet offers & loss at prevailing offers. Hence, prices may either remain stable or rebound soon & if not, then they may go for production cuts to maintain supply-demand chain.