*Correction: Indian Sponge Iron Export Offers Rally Following Hike in Domestic Prices

Indian sponge iron export offers increased further by USD 5-10/MT against last week. However, after price hike the buying interest remains limited from the Bangladeshi mills, as stated by exporters.

SteelMint's current week price assessment for lumps grade FeM 80 sponge iron stood at around USD 270/MT* CPT Benapole (dry land port of Bangladesh & India), this is equivalent to USD 285/MT* CFR Chittagong, Bangladesh.

Meanwhile, the last export deals were reported by the sources in Kolkata, eastern India at around USD 255-260/MT* on CPT basis.

"In last week, few lots were sold at around USD 257-260/MT* CPT Benapole. However, in the current week still there is no inquiries as major buyer seems to be in wait & watch mode.

The domestic finished steel demand is weak in Bangladesh and the buyers fear to book healthy volumes on increase price range" stated by participants in eastern India.

In a month (during Oct'19), imported scrap offers to Bangladesh surged by USD 30/MT, while sponge iron import offers by USD 15/MT, as per assessment made by SteelMint.

Indian Sponge iron prices up

Indian domestic sponge iron prices remain on higher side due to high cost raw material & substitutes products as well amid improved inquiries.

As per standalone sponge producers, recent hike in domestic coal prices by INR 400-600/MT has raised their production cost. Also as the key substitute products prices are on the higher side, they are not looking to deal at a lower price range.

Current offers for 78-80 FeM Sponge iron (C-DRI) are assessed at INR 17,800-18,000/MT (USD 252-255) ex-Durgapur & INR 16,400-16,500/MT (USD 232-234) ex-Rourkela, East India.

The same grade material in other parts like Central India-Raipur traded at INR 17,100-17,300/MT (USD 242-245) & in South India - Bellary at INR 16,400-16,500/MT (USD 232-234). The prices mentioned are ex-plant & excluding local taxes (GST at 18%).