Central India: Furnaces Turn Active as Healthy Volumes Booked of Sponge iron

SteelMint in conversation with the sponge iron manufacturers & trade participants learned that, on 3rd Jun'19 decent volumes of Sponge P-DRI have been sold out in local market of Raipur, central India.

On an average, close to 10,000 MT Sponge P-DRI has been sold out last day by major sponge iron producers in Raipur and as per them 80-90% material have been booked by local mills.

Further the deal price for the material reported in the range of INR 18,000-18,200/MT ex-plant.

"Seems the current price are in bottom range and further sharp fall is limited" stated by one of local Ingot/Billet manufacturer in Raipur.

"Meanwhile lifting pressure being mounted from the sponge manufacturers", he added.

In line Sponge iron demand in other major markets. In Southern India, Bellary based sponge manufacturers being stated healthy trades at the price range of INR 18,600-18,700/MT ex-plant for Sponge P-DRI and the material have been largely sold for neighbouring market i.e. Hyderabad.

In context to eastern India, the trade volumes of Sponge iron in Odisha remain on average basis as per 100-300 TPD sponge manufacturers.

Similarly in Durgapur where small parcels of Sponge P-DRI have been booked last day at INR 18,400-18,600/MT through the local furnaces.

As per industry sources, Indian sponge iron prices should not fall further as input cost is more than the current sale price of Sponge P-DRI.

On an average, the selling price of Sponge P-DRI indicated not less than of INR 19,000/MT, however currently it hovering at INR 18,000-18,600/MT; ex-works, in major locations.