Indian Sponge Iron Export deals Conclude with USD 15/MT price hike

Indian sponge iron export offers increase by USD 10-15/MT, according to SteelMint's weekly price assessment.

According to trade sources, the price rise is in line with the depreciation of Indian Rupee against US Dollar and rising global scrap offers. The sudden rise in global scrap offers has also lead to an improved demand for Indian DRI.

SteelMint's current week price assessment for 80 FeM sponge lumps are at around USD 390-395/MT CPT Benapole (land port of Bangladesh and India) against last week's assessment of USD 380/MT. On CFR basis the latest offers are at around USD 405/MT, CFR Chittagong, Bangladesh.

An exporter based in Kolkata reported, about 1,500-2,000 MT sponge iron has been sold out to Bangladesh at USD 395-400/MT (CPT Benpole) earlier this week and most of the quantity has been purchased by BSRM Steel Mills, which are the largest steel producer in Bangladesh.

He added that buying interest had risen for sponge iron over rising imported scrap prices and rapidly declining inventories with steel producers in Bangladesh for key raw materials - sponge iron and scrap.

The shredded scrap offers to Bangladesh have increased this week by USD 10/MT and are reported around USD 400/MT from USA origin, CFR Chittagong. Meanwhile, HMS 1&2 & PnS grade scrap offers are stable are hovering at USD 365-370/MT & USD 385/MT, CFR, respectively.