Indian Sponge Iron Export Offers Stable, W-o-W

SteelMint's weekly price assessment shows that Indian sponge iron export offers more or less firm despite limited trade activities.

SteelMint's price assessment for 80 FeM sponge lumps in current week stood at USD 310-315/MT CPT Benapole (land port of Bangladesh and India) and at around USD 320-330/MT CFR Chittagong (in containers), the offers are similar against price assessment during last week on 11th Oct.

Meanwhile, a deal of about 1,500 MT Sponge iron lumps (FeM 82%, +/- 2) confirmed by a Gujarat - Western India based manufacturer for Bangladesh at USD 295/MT FOB India west coast, which is equivalent to USD 320-325/MT CFR Chittagong. And the purchaser according to sources is - Bangladesh's one of the largest steel producer.

"Sponge iron trades have slowed down due to softening domestic steel prices and high congestion at Bangladesh ports. At the same time ship breaking prices have noticed a drop, which has made Bangladesh based mills hesitant to make fresh bookings " said an Indian supplier.

Imported scrap offers to Bangladesh also remain stable - at USD 325-330/MT for HMS & USD 330-335/MT for Shredded scrap, CFR Chittagong (Bangladesh) basis.

Bangladesh imports on an average 15,000-20,000 MT sponge iron from India on monthly basis.

Domestic Sponge iron prices in India

Domestic sponge iron prices in India are range bound. Current offers for sponge iron (C-DRI) are at INR 17,000-17,200 /MT (Ex-Durgapur) and pellet sponge (P-DRI) at INR 16,300-16,500/MT (Ex-Durgapur) for FeM 78%.