Indian Sponge Iron Export Offers Remain Unchanged

Indian sponge iron export offers to Bangladesh remain unchanged with limited trade activities.

According to SteelMint's weekly assessment, the latest offers for coal based sponge iron (lumps) of 82 FeM, stand at USD 315/MT CPT Benapole and USD 325-330/MT CFR Chittagong. Although few deals have also been reported at USD 312-313/MT, CPT Benapole (land port of Bangladesh and India).

"Buying interest is thin and the buyers are more comfortable importing through land port as waiting time is much less than the sea port. Imports of scrap to Bangladesh has come down owing to higher container freight rates. It is expected that sponge buying will pick up " stated an sponge iron exporter in India.

The fresh offers for imported scrap to Bangladesh are reported at - HMS at USD 325-330/MT, Shredded at around USD 345-350/MT & PnS 350-355/MT, CFR Chittagong, Bangladesh.

Local traders mention that mills are running short on inventories and may come back to market soon.

Scrap Imports Surge Q-o-Q

Bulk scrap imports to Bangladesh has increased significantly this fiscal. During Jul-Oct'17, bulk scrap imports to Bangladesh stood at 291,590 MT against 246,900 MT in the similar time frame last year.

Further, according to port data maintained by SteelMint, around 9-10 vessels are still waiting to be discharged. Bangladesh ports are experiencing heavy congestion owing to rising demand for scrap, coal and food grains.