Indian Sponge iron Export Offers Inch Up by USD 5/MT

Sponge iron export offers slightly moved up by USD 5/MT W-o-W following hike in Indian domestic prices by around INR 500-1,000/MT (USD 7-14) in a week's time.

As per export sources, the last deals for exports were close to USD 310/MT CPT Benapole(dry port of India & Bangladesh), equivalent to USD 330/MT CFR Chittagong, Bangladesh. However the fresh offers reported at around USD 315/MT CPT & USD 335/MT CFR Chittagong.

As per them the fresh deals on increased prices yet to take place as buyers are preferring to be in wait & watch mode owing to low cost imported scrap. Therefore on rising sponge prices, deals are not supported.

The imported scrap offers to Bangladesh maintained stability after witnessing decline in past few weeks.

The offers for imported containerise Shredded grade scrap reported at around USD 330-335/MT, CFR Chittagong of UK, USA and Canada origin. Meanwhile, HMS 1 from Chile and Brazil is being stated at close to USD 320/MT, CFR.

Market expects Indian domestic sponge price likely to trade at same range as domestic demand is better amid strong supply which has balanced supply-demand chain at present.

The current offers for export grade Sponge iron lumps (FeM 80) in Eastern India (Odisha & Jharkhand) is hovering at around INR 20,000/MT (USD 282) ex-works. The logistic cost from eastern region to dry port (CPT Benapole) is about USD 35/MT. Hence the landed cost for exports will be close to USD 315-320/MT CPT Benapole port.