Indian Sponge Iron Export Bookings Remain Weak over Cost Effective Imported Scrap

Small deals are taking place at slightly reduced prices, although major buyers are still negotiating and looking for sponge at further lower prices, stated by sponge iron exporters in eastern India.

As per them, small parcels have been sold at close to USD 317-318/MT as against last week at USD 321-323/MT CPT Benapole port (dry port of India & Bangladesh).

Thus with the fresh deals in hand, SteelMint's weekly price assessment further lowered by USD 5/MT and stood currently at USD 315-320/MT CPT Benapole, equivalent to USD 335-340/MT CFR Chittagong, Bangladesh.

Sources confirmed that imported scrap offers to Bangladesh continued to cheaper and this resulted in fall in sponge bookings.

The latest offers for imported containerise Shredded scrap heard at around USD 330/MT, CFR depending on origin. Meanwhile offers for HMS 1&2 from South America, Brazil in the range USD 315-320/MT, CFR Chittagong, Bangladesh.

Amid low cost imported scrap, the buying interest for sponge iron through the major mills of Bangladesh reported at close to USD 310/MT CPT, equivalent to USD 330/MT CFR Chittagong. However as per Indian suppliers, the export deals at this prices are not feasible as domestic price realisation is high.

Presently, the domestic offers for export grade sponge iron (FeM 80, lumps) in eastern India hovering at around INR 20,000-20,200/MT (USD 282-285) ex-mill, Odisha & Jharkhand. The logistic cost for Benapole port reported at close to USD 35/MT. Thus the landed prices of exports would be nearly USD 317-320/MT CPT Benapole (dry port of India & Bangladesh).