Indian Sponge Iron Export Offers Surge on Domestic Gains

Following surge in Indian domestic sponge prices, the export offers to Bangladesh increased sharply by USD 15/MT W-o-W. In line with Indian domestic sponge iron price hike, it marked uptick by INR 1,500/MT (USD 22) W-o-W in eastern region.

As per major exporters in eastern India (Odisha & Jharkhand), recent few deals concluded at around USD 335/MT CPT Benapole (dry port of India & Bangladesh), equivalent to USD 355/MT CFR Chittagong (Bangladesh) as against last week at close to USD 320/MT CPT & USD 340/MT CFR Chittagong.

As per them, amid surge in scrap prices globally, the sponge iron demand is active even though there is significant jump in export offers since a week. Further they are assuming demand to remain supported as positive momentum continued in international market.

Bangladesh is the largest sponge iron importer from India with a contribution of about 50-55%. India's sponge iron export in Jan-Nov'18 recorded at 1,961,487 MT in which exports to Bangladesh is about 1,081,256 MT (55.1%), as per custom data maintained by SteelMint.