Indian Sponge Iron Export Offers Hit 2 Years Low

Following constant drop in domestic prices, Indian sponge iron export offers are currently trending 2 years low, as per fresh assessment made by SteelMint. The similar export price range were last seen during June 2017.

As per exporters despite quite attractive offers, deals are usual for Bangladesh and reported last deals for sponge iron lumps (FeM 78-80) at close to USD 300-305/MT CNF Chittagong for more than 3,000 MT, this is equivalent to USD 285-290/MT CPT Benapole (dry port of India & Bangladesh).

As per assessment, offers fell by USD 10-15/MT W-o-W as against last week to USD 310-315/MT CNF Chittagong, Bangladesh. Meanwhile in a week's time sponge iron prices in Indian domestic market slumped by INR 1,000/MT (USD 14) on weak demand, low offtake & healthy supply.

Imported scrap offers to Bangladesh continued downturn owing to falling prices globally and as per last assessment prices dropped by USD 8-10/M in a week and offers for containerised Shredded grade stood at around USD 330/MT, CNF Chittagong of UK origin.

In context to local steel demand in Bangladesh, it slightly better due to rising prices in the country on proposed hike in tax structure in recent budget.