Indian Sponge Iron Export Offers Increase Further in Recent Trades
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Indian sponge iron export offers increased twice in current week by USD 5/MT following rise in domestic prices. Also, according to the exporters, presently there is good participation by Bangladeshi smelters due to significant surge in global scrap prices.
According to SteelMint assessment, in the current week domestic sponge prices increased by INR 500-800/MT (USD 7-13) and similar price hike is being marked in global scrap prices by USD 10-15/MT.
The latest export price assessment for 80 FeM sponge lumps stood at USD 388-390/MT CPT Benapole (land port of Bangladesh and India) against beginning of current week at USD 383-385/MT. On CFR basis the latest offers are hovering at USD 405-410/MT, CFR Chittagong, Bangladesh.
According to one of Odisha's largest sponge iron exporter, the deals are mostly through sea route due to high congestion on road route (dry port). Latest deals have been reported for about 1,000 MT sponge iron at USD 410/MT CFR Chhittagong. And on CPT basis it would be translate at around USD 390/MT.
He mentioned that," sponge demand has improved in line with rising scrap prices globally amid supply crunch. Hence, mills are actively booking sponge iron on increased prices."
India produces around 24-25 MnT sponge iron annually in which the nations exports during CY 2017 (Jan-Nov) reported at 480,000 MT against 260,000 MT in the same period last year.
Bangladesh remained the largest importer of Indian sponge iron exports in 2017 (Jan-Nov), importing about (48.61%) followed by Nepal (11.22%), Indonesia (8.06%) and Bhutan & Thailand, each about 7%.
Imported Scrap Offers
Imported scrap offers have moved up by USD 15/MT W-o-W and are currently assessed - for Shreded (US origin) at around USD 400/MT & for HMS 1&2 from Middle east at USD 380-385/MT, CFR Chittgong.
Recently, in last week a leading steel producer in Bangladesh has booked two bulk scrap import vessels containing total around 60,000-65,000 MT scrap at around USD 380-385/MT, CFR Chittagong, shreded grade.
Indian Sponge Market
Indian domestic sponge iron prices continue to surge on improved demand and rise in billet prices.
Today, offers for 78-80 FeM Sponge iron (C-DRI) are assessed at INR 22,100-22,300/MT (USD 340-343) ex-Durgapur & INR 20,600-20,800/MT (USD 317-320) ex-Rourkela, East India. Meanwhile, the same grade in other parts like Central India-Raipur trade at INR 21,400-21,600/MT (USD 329-332) & in South India - Bellary at INR 20,800-21,000/MT (USD 320-323). The prices mentioned are ex-plant & excluding local taxes (GST at 18%).
