Indian Sponge Iron Export Market Turns Active in Recent Deals to Bangladesh

Bangladesh - which is the largest buyer of Indian sponge iron recent has resumed purchase which was slowed down since couple of weeks.

Sources reported to SteelMint that, near to 3,000-5,000 MT sponge iron have been booked by the regular buyers from Dhaka & Chittagong, Bangladesh.

On an average the deal prices for Sponge C-DRI (FeM 80, 100% lumps) reported at USD 258-260/MT CPT Benapole (dry port of India & Bangladesh), this is equivalent to USD 275/MT CFR Chittagong.

With this fresh deals, offers inched up by USD 5/MT as against last week in which offers were floated at near to USD 255/MT CPT, equivalent to USD 270/MT CFR Chittagong.

The export offers have increased on account of domestic gains and as per analysis, this week domestic sponge iron offers in eastern India surged by INR 200-400/MT (USD 3-6).

Participants believe that, Indian sponge iron prices are likely to remain volatile or find support in coming days on account of strengthening prices of billet & substitute products globally. This may lead to strong sponge iron demand.