Indian Sponge Iron Export Offers Firm on Steady Demand

Sponge iron export offers from eastern India to Bangladesh remain unaltered, as per SteelMint's weekly assessment. The prices remained firm on account of steady demand despite volatility in Indian domestic sponge market.

India's current export offers for Sponge iron lumps, bag packed (FeM 78-80) hovering at USD 370/MT CPT Benapole (dry port of India & Bangladesh) & USD 390/MT CFR Chittagong, Bangaladesh.

As per an exporter in East India- Kolkata, the small mills in Bangladesh are silent at current offers and are turning towards substitutes.

However the major large mills in Chittagong are actively booking material amid rising global scrap prices and anticipated improvement in demand in local market after monsoons, he said.

As per assessment, the imported scrap offers in Bangladesh have increased about USD 10/MT in last one week and currently evaluated at USD 365-370/MT for Shredded in containers & USD 370-375/MT for P&S grade, CFR Chhittagong.

Indian exported about 344,000 MT sponge iron during Jan-Aug 2018, in which exports to Bangladesh was near 54% at 186,000 MT.

It seems that Indian sponge iron export may remain healthy and are likely to cross 600,000 MT ton in current calender year as against last year (CY17) at 549,000 MT in line with rising melting capacities in the neighbouring countries like - Bangladesh & Nepal and also due to strengthened global scrap prices.