Indian Sponge Iron Export Market Turns Active; Deals reported

After a gap of few weeks, some small parcels of Indian sponge iron exports have been concluded to Bangladesh, SteelMint learned from trade sources.

The fresh export deals from India for about 3,000-4,000 MT Sponge iron (100% lumps, 79-80 FeM) have been reported this week at price range of USD 270-275/MT CPT Benapole (dry port of India & Bangladesh), which is equivalent to USD 285-290/MT CFR Chittagong, Bangladesh.

As per sources, some of the large steel mills in Bangladesh have further lowered finished steel production due to weak demand as well rising inventories. Hence demand for imported raw materials being narrowed down since quite some time.

SteelMint also learned from the local mills Bangladesh that prices of rebar are falling continuously on account of poor off take. As reported, in a week's duration, local steel prices dropped near to BDT 2,000-2,500/MT (USD 24-30).

Bangladesh is the largest buyer of Indian sponge iron exports and accounts for more than 50% share. The local mills in Bangladesh melt 2-4% sponge iron to produce hot metal and remaining is scrap either imported or ship breaking.

In conversation with the market participants, SteelMint learned that imported scrap offers to Bangladesh have fallen sharply and assessed at around USD 290/MT, CFR Chittagong for containerized Shredded scrap from UK, Europe and USA.