Indian Sponge Iron Export Offers Firm on Steady Demand & Weak Rupee

Sponge iron export offers from eastern region reported to be firm amid steady demand and weakening Indian currency against US dollar. As per exporters, buying interest is good at firm prices. Indian currency has depreciated to 74.11 against USD which was trading at USD 73.11 a week ago.

As per SteelMint's weekly assessment, the latest export offers for FeM 78-80 sponge iron hovering at USD 335/MT CPT Benapole (dry port of India & Bangladesh), equivalent to USD 355/MT CFR Chittagong, Bangladesh. The prices are more or less similar against last week's assessment at USD 330-335/MT CPT & USD 350-355/MT CFR.

As per exporters, decent volumes have been booked in last week by major mills in Chittagong & Dhaka at an average price of USD 350-353/MT, CFR. However as the rupee continues to weaken the export offers are at firm levels, they added.

Sponge iron prices in Indian domestic market have slightly moved up following improved demand from local mills. The current offers for FeM 78-80 Sponge iron evaluated at INR 22,800-23,000/MT ex-mill, Durgapur/Rourkela, East India.

Meanwhile for same grade prices in other major markets stood at around INR 24,000-24,200/MT ex-Raipur, Central India & INR 22,600-22,800/MT ex-Bellary, South India.

Market anticipates, Indian sponge iron prices to remain volatile due to improved supply, subdued demand & expected price fall in Iron ore & pellets. Meanwhile global scrap prices will play a key role as in general scrap prices in international market gain momentum during winter season due to re-stocking, this may lead to rise in demand & prices for India sponge iron.

The latest imported scrap offers to Bangladesh reported at around USD 375/MT, CFR Chittagong for PNS.