Indian Sponge Iron Export Offers Stable Despite Fluctuations in Domestic Prices

Indian sponge iron export prices remain more or less firm over subdued demand from domestic & Bangladeshi buyers, as per weekly assessment made by SteelMint.

The fresh offers for sponge iron (80 FeM, 100% lumps) are noted as similar to the last week's at around USD 300-305/MT; CPT Benapole (dry port of India & Bangladesh). This is equivalent to USD 315-320/MT CFR Chittagong, Bangladesh.

As per participants from eastern India, only small parcels are being booked by the buyers who are in immediate need while major bookings are yet in wait & watch mode amid unpredictable market trends along with falling scrap prices globally. It is to be noted that following subdued demand, the sponge prices in Indian domestic market remained volatile by INR 100-300/MT since more than a week's duration.

Inline with this, the export offers to Nepal are largely firm and are assessed close to USD 280-282/MT for 80 FeM, sponge C-DRI mix material & loaded into rakes in eastern India.

Bangladesh is the major buyer of Indian sponge iron exports with a contribution of about 55%, followed by Bhutan & Nepal.

India exported total of 783,063 MT sponge iron during Jan-Nov'19, out of which Bangladesh imported 422,818 MT (54%), Bhutan imported 153,795 MT (19.6%) & 119,801 MT (15.3%) were imported by Nepal. The Indian sponge iron exports surged by 17% Y-o-Y as against 671,124 MT during 2018 (Jan-Dec).

Sources believe that Indian sponge iron exports could remain strong on account of ramp up melting capacities in neighboring nations.